KPMG Gets Reprimand From U.K. Regulator Over Reserves Audits

The U.K.’s accounting watchdog reprimanded KPMG after the firm admitted shortcomings in three years of work for a client, which had to restate its distributable reserves twice.

The Financial Reporting Council said the accounting firm admitted problems in its reserves audits of Foresight 4 VCT plc, and ordered KPMG to check compliance with revised audit procedures on company capital and distributions.

KPMG will have to report on its compliance to the regulator’s executive counsel, according to an FRC statement on Friday. The sanctions come after the FRC said KPMG’s errors “may have led to misstatements relating to distributable reserves ...