Former KPMG partner fined £150,000 for misleading regulator
Britain’s accounting watchdog has fined former KPMG partner Stuart Smith £150,000, after he admitted misleading the regulator during a spot inspection.
Smith and KPMG admitted misleading the UK’s Financial Reporting Council (FRC) during its inspection of an audit of data management firm Regenersis’ financial statements.
Smith will also be banned from the Institute of Chartered Accountants in England and Wales (ICAEW), the accountant’s professional membership body, for a recommended three-year period.
The sanctions come after Smith decided to settle with the FRC, instead of contesting the allegations.
In a statement, the FRC said Smith admitted that he was responsible for presenting misleading representations to the FRC’s inspectors, and that he had been reckless in his considerations as to whether inspectors would be misled.
Sanctions imposed on KPMG will be decided by a tribunal at a later date, following the conclusion of an ongoing hearing.
KPMG also agreed to pay the FRC’s costs in carrying out the investigation and enforcement proceedings.