I’m delighted to report that Accounting Insight News’s daily update is back.
Our regular news feature turned into a sporadic offering for a few weeks while our attention was focused on Accountex 2019.
But with the ExCeL event behind us and the speaker programme for Accountex Summit North (Manchester Central on 10 Spetember) well under way, we’re swinging back into action.
So here goes… Oddly, or perhaps predictably, the Big Four are still in the news for all the wrong reasons. It’s almost like we’ve never been away.
This time it’s KPMG and the issue is bullying.
Fine for misconduct
And, remember, the group is presently looking at a £12.5m fine for misconduct in its dealings with Bank of New York Mellon.
Added to which it has been fined £11m this year for substandard auditing work at Co-operative Bank and insurer Equity Red Star.
It is also at the centre of investigations into Carillion, Rolls-Royce and UK drinks supplier Conviviality.
Insurance software
Oh, and Last year it was fined £5m for auditing mistakes at Ted Baker and at insurance software seller Quindell.
So now KPMG has been reported to the Financial Reporting Council by a former employee who has asked the regulator to look at how the group dealt with complaints of bullying by a senior partner.
Last week it came to light that two senior women partners at KPMG quit the firm over its handling of the case.
More allegations
KPMG says that Sanjay Thakkar, deal advisory unit head, eventually stepped down after more allegations surfaced about his conduct.
Thakkar had initially avoided disciplinary action in December after bosses decided that his behaviour, reported on KPMG’s whistleblowing hotline, was not bullying.
However, it emerged that other complaints about the 50-year-old’s behaviour had been repeatedly ignored by executives going back to 2017.
Bad behaviour
A former KPMG employee, who quit last year, tells the FT: “There will be people there who think it’s great. But I know so many people who talk about this permissive culture that allows this bad behaviour to continue.
“There are so many of these stories where revenue and seniority is king. You are untouchable if you are senior and the shit just flows downhill.”
The FRC says: “While we do not comment on individual cases we expect audit firms to uphold high standards and for the FRC to be notified of any behavioural issues under our audit firm monitoring approach where these standards are not met.”
