KPMG Reprimanded and Fined in Ireland | AccountingWEB

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.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.