Watchdog spotlights KPMG for ‘deterioration’ in audit quality
The Financial Reporting Council has highlighted a worsening in audit quality at KPMG as reports that audit standards across the Big Four firms has fallen.
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KPMG, the auditor under investigation for its work on the collapsed construction giant Carillion, has been told by the UK's audit watchdog that half its FTSE 350 audits last year required "more than just limited improvements".
The Financial Reporting Council (FRC) said 50% of KPMG's audit in the FTSE 350 needed improving, compared with 35% in the previous year, and described the "deterioration" as "unacceptable".
The news came as the FRC reported a worsening of audit quality across eight firms inspected in 2017-18, as 72% of audits required limited improvements compared with 78% in 2016-17.
"Firms must strenuously renew t
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