Ikaba Koyi Sharecast | 19 Sep, 2017 16:42 - Updated: 16:42
KPMG cleared of misconduct in HBOS audit
The UK's independent regulator has announced the closure of its investigation into KPMG's audit of collapsed banking and insurance company HBOS, after finding that the group could not have anticipated the extreme market conditions that led to the bank’s problems.
Following a detailed investigation, the Financial Reporting Council concluded that "there is not a realistic prospect that a tribunal would make an adverse finding against KPMG."
"The firm’s work did not fall significantly short of the standards reasonably to be expected of the audit, the test that a Tribunal would apply," the regulator added.
The council said it conducted a thorough investigation, liaising with other regulators with knowledge of the relevant events, having obtained expert advice from independent and experienced lawyers and audit professionals.