KPMG Faces Lawsuits, Regulatory Scrutiny Over Two More Audits

The bad news keeps coming for KPMG, with new headaches related to audits in the UK and Canada.

The Financial Reporting Council, the UK accounting watchdog, said Tuesday that it had opened an investigation into the Big Four firm’s audits of an agricultural company, Carr’s Group Plc. Also Tuesday, receivers for a bankrupt Canadian finance company said they were suing KPMG for a reported C$1.4 billion ($1.1 billion).

The Big Four accounting firms—which also include PwC, Deloitte and Ernst & Young—have been under a harsh public spotlight recently, with ongoing questions about conflicts of interest between their consulting and audit ...