KPMG Gets Reprimand From U.K. Regulator Over Reserves Audits

Accounting firm admitted problems in work for Foresight 4 VCT
FRC says failures may have led to misstatements on reserves

A logo sits on display outside the offices of KPMG LLP in the Canary Wharf business and shopping district in London.

Photographer: Simon Dawson/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Stephanie Bodoni

June 12, 2020 at 6:48 AM UTC

This article is for subscribers only.

The U.K.’s accounting watchdog reprimanded KPMG after the firm admitted shortcomings in three years of work for a client, which had to restate its distributable reserves twice.

The Financial Reporting Council said the accounting firm admitted problems in its reserves audits of Foresight 4 VCT plc, and ordered KPMG to check compliance with revised audit procedures on company capital and distributions.