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Daily Insurance Industry News
Sunday 21st of January 2018
June 25, 2008

KPMG fined £500,000 over Independent Insurance audit

by Gill Montia

Story link: KPMG fined £500,000 over Independent Insurance audit

Accountancy firm KPMG and one of its auditors, have been fined £495,000 and £5,000 respectively for failing to complete a professional audit of Independent, the insurance company that collapsed in 2001 with the loss of over 1,000 jobs.

The Joint Disciplinary Scheme, an independent body set up by the Institute of Chartered Accounts, has found that the auditor failed to take steps to check suspicious information given to him by the management of Independent during the company’s audit for the year ending 31 December 2000.

The events were centred on Independent’s re-insurance at a time when the company was holding back information about its claims reserves.

Michael Bright, former chief executive, chairman and managing director at Independent Insurance, Philip Condon, the firm’s deputy managing director, and finance director Dennis Lomas were all given custodial sentences in October of last year.

The trial lasted four months and has been described as one of the Serious Fraud Office’s most complex and expensive investigations.

KPMG has also been ordered by the Joint Disciplinary Count to pay costs of £1.15 million.

 

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