This comes from the disciplinary pages of this months Economia magazine, reporting from the Institute of Chartered Accountants in England and Wales:
It would appear that KPMG isn't able to work out who can sign audit reports these days. In that case what chance is there that the report is right?
No wonder we need audit reform.
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The fine seems rather light.
Rod White says:
“The fine seems rather light.”
Perhaps a fine pro rata as percentage of the audited sum would concentrate attention to ‘detail’.
I suspect they self reported the error to avoid a bigger penalty
If that is not the case then it is shockingly small when such a thing should never happen
Ridiculously small fines like that cultivate moral hazard. If there are no serious consequences for failure then they just won’t care.
Agreed
A small firm would have been charged much more – almost certainly
Capture is a big issue as well
Marco Fante says:
“Ridiculously small fines like that cultivate moral hazard. If there are no serious consequences for failure then they just won’t care.”
Aye, but they’ll be mortified by the embarrassment…… 🙂