KPMG conflict of interest while undertaking Ted Baker audit sees it hit with a £3m fine, reduced to £2.1m after settling.
Accountancy’s regulator has fined KPMG and partner Michael Barradell after they admitted misconduct in relation to the audits of fashion retailer Ted Baker in 2013 and 2014.
The Financial Reporting Council (FRC) settlement saw KPMG severely reprimanded and fined £3m—reduced to £2.1m alongside £112,000 in costs. Barradell was reprimanded and fined £80,000—reduced to £46,800 taking into account mitigating factors and settlement.
Misconduct arose from KPMG providing expert witness services to Ted Baker in a commercial court claim, in breach of ethical standards and which lost its independence in respect of the audits.
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda