KPMG Reprimanded and Fined in Ireland

KPMG-Ireland has been reprimanded and fined by the Institute of Chartered Accountants in Ireland (ICAI) for what the Institute described as an audit that "in terms of efficiency and competence fell below the standards to be expected."

The questionable audit of Powerscreen International subsidiaries Matbro Ltd. and Matbro (NI) Ltd. was conducted for the year ended March, 1997. While parent company Powerscreen was attempting to raise $28 million on the stock market based on strong reported profits, the profits of Matbro subsidiaries were found to be overstated by over $73 million. When the Matbro issue became public, Powerscreen's stock value dropped drastically and several company executives resigned abruptly.

Rather than refuting the criticisms, as the US KPMG firm is doing in an Orange County, California case reported earlier this week, the Irish arm of KPMG firm stated that it "accepts that the work, in this particular case, fell below its own rigorous standards."

According to the Irish institute, KPMG auditors exercised "inadequate application of professional skepticism during the course of the audit." Both KPMG and former audit partner Saunders Graham were formerly censured by the Institute.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.