KPMG facing probe over Rolls-Royce accounts

Business & Economy 04 May 2017
KPMG facing probe over Rolls-Royce accounts

KPMG facing audit probe after Rolls-Royce bribery settlement

The Financial Reporting Council has launched an investigation in the wake of Rolls's record settlement with the SFO in January.

Image: KPMG said it was confident in the quality of its audit work

By John-Paul Ford Rojas, Business Reporter

KPMG is facing an investigation by regulators over its auditing of Rolls-Royce's accounts after the engine maker paid £671m to settle bribery and corruption claims.

The Financial Reporting Council (FRC) said it had commenced a probe into the accountancy giant's handling of Rolls-Royce financial statements over a period from 2010 to 2013.

It said the decision follows the announcement of a settlement between Rolls and the Serious Fraud Office (SFO) relating to "offences including conspiracy to corrupt and a failure to prevent bribery".

The FRC has wide ranging powers including being able to issue bans and fines if it decides to do so following an investigation process.

Rolls-Royce logo at its aerospace engineering and development site in Bristol
Image: Rolls-Royce has reached settlements with UK, US and Brazilian authorities

Rolls-Royce disclosed in January that it had agreed settlements with UK, US and Brazilian authorities over bribery and corruption claims.

They included a record £497m payment to Britain's SFO.

Details were laid out at a court hearing, with a network of bribes going back a quarter of a century in seven countries.

KPMG said it would cooperate fully with the FRC's investigation.

The firm said: "We are confident in the quality of all the audit work we have completed for Rolls-Royce, including the 2010-2013 period the FRC is considering."

Original Article

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