Bank of England ‘probed’ strength of KPMG’s business

Bank Of England

The Bank of England examined big four accountant KPMG after a string of scandals including its role in the Carillion collapse and its involvement with the controversial Gupta family in South Africa.

According to a report in the Financial Times, the bank’s Prudential Regulation Authority (PRA) raised questions with financial institutions and other regulators to see whether there were risks to KPMG’s viability.

KPMG has been criticised for its work for outsourcer Carillion which failed in January and has also been caught up in a corruption scandal in South Africa centred around the powerful Gupta family.

Read more: KPMG expects 400 employees to go in shake-up of South Africa business

KPMG is under investigation for the quality of its audit of Carillion and in South Africa it is being investigated by two separate regulators.

Its chairman Bill Michaels said: “KPMG is in robust financial health.

“KPMG is seeing outstanding growth right across our audit, tax and advisory arms, we have a strong balance sheet and are well funded with a growing pipeline.

Read more: KPMG has been slammed by the accountancy watchdog

“The Bank of England has a legitimate duty to scrutinise the market. But they have not approached KPMG formally or informally. If they were to, we would be happy to reassure them of our robust financial health.”

A spokesperson for the Bank of England said: “The PRA is not in discussions about the viability of any audit firm.”

Full story: Bank of England ‘probed’ strength of KPMG’s business: City A.M.

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