While the next phase has supposedly been reached, a final settlement remains several months away.
A record penalty from the FRC has been predicted by industry sources, meaning it would exceed Deloitte’s £15m Autonomy sanction and most likely reach up to £25m.
A KPMG spokesperson told Sky News: “We are cooperating fully with the FRC’s investigation. We have and will continue to respond appropriately to the initial investigation report.”
The failed audit of Carillion, which collapsed with over £5bn of debt in 2018, has been widely attributed as a key reason for the government’s audit overhaul proposals released yesterday (18 March).
The reforms aim to safeguard British jobs, avoid company failures, and rebuild “people’s confidence in business” by introducing a number of measures that include external regulators, capping market share, and increasing director accountability.
Accountancy Today has contacted KPMG for comment.