UK Biggest Fraud Investigation - terminated

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WizardDr

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This was biggest fraud bribery case according to FT Alphaville:

Closure of investigation into the conduct of: KPMG Audit plc, Member Firm of the ICAEW
PN 07501 Aug 2013

The Financial Reporting Council (FRC) announces the closure of the investigation into the conduct of KPMG Audit plc as auditors to British Aerospace/ BAE Systems Group plc and subsidiaries.

The Accountancy and Actuarial Discipline Board (AADB) launched its investigation in 2010 into audits and professional services advice provided by KPMG to BAE in the period 1997 to 2007. Subsequent investigations have shown that proper assessment of KPMG’s conduct would require consideration of work undertaken in earlier years. Because there is no realistic prospect that a Tribunal will make an adverse finding in respect of a complaint relating to work done so long ago it has been concluded that it is not in the public interest to extend the investigation to the years preceding 1997.

The investigation has therefore been closed in accordance with paragraph 7(14) of the FRC Accountancy Scheme.
 
There is a lot to be said for keeping your document retention policy up to date!
 
Prediction: No successful cases will be won against Auditors.

Makes you wonder the purpose.

What could be done:
- forced rotation of plcs every 3 years
- no previous auditor firm in previous 18 years
- auditor contract includes IASSA as a party in public interest
 
WizardDr said:
Prediction: No successful cases will be won against Auditors.

Makes you wonder the purpose.

What could be done:
- forced rotation of plcs every 3 years
- no previous auditor firm in previous 18 years
- auditor contract includes IASSA as a party in public interest
Click to expand...

Not really realistic since there are not enough large scale audit firms to implement it. Restricting accounting firms to providing the traditional bread and butter services however would go along way towards reducing the conflicts of interest.
 
@Jim2007 the very point - it would allow for growth and bring huge competition to the big 4 and the next tier. Its called an oligopoly and it stinks.
 
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