India: KPMG Assurance pays US regulator's penalty in 2017 case

Dec 27, 2022

Synopsis
In an earlier order, the PCAOB announced that it had censured KPMG Assurance and Consulting Services LLP, a registered public accounting firm, and a KPMG partner, along with KPMG India, and imposed civil money penalties of $1,000,000 on KPMG India and $75,000 on the partner.

KPMG Assurance and Consulting Services LLP India, and a partner who had been indicted by the Public Company Accounting Oversight Board (PCAOB), have both paid off the penalty imposed by the US audit regulator in a 2017 case.

In an earlier order, the PCAOB announced that it had censured KPMG Assurance and Consulting Services LLP, a registered public accounting firm, and a KPMG partner, along with KPMG India, and imposed civil money penalties of $1,000,000 on KPMG India and $75,000 on the partner.

The board put these penalties in place because, during an audit of an issuer, it found KPMG India had broken PCAOB rules and quality control standards regarding audit documentation.

Commenting on the development, a KPMG India spokesperson said, "KPMG in India has reached a settlement with the PCAOB regarding this matter. As a firm, we are focused on delivering high-quality audits, and the conclusion of this matter, along with the enhancements we have made to our quality control systems, enables us to move forward. We remain committed to a culture built on quality and integrity in line with KPMG's values, building public trust and delivering high quality professional services to fulfil our important role in the capital markets."

PCAOB said the KPMG partner violated rules and standards when he and certain other engagement team members signed off on blank placeholder work papers in the firm's electronic audit software.

[The Economic Times]