Following BAE’s recently agreed fine (more here), the Accountancy and Actuarial Discipline Board – the independent, investigative and disciplinary body for accountants in the UK – has begun an investigation into the conduct of Big-4 accounting firm KPMG in its role as as auditors to BAE Systems plc and their not-spotting and/or not reporting properly on the irregular ‘commissions’ paid by BAE to and via a marketing agent Shailesh Vithlani, the company’s former marketing adviser in Tanzania. The scope of the investigation is as follows:
The audits of British Aerospace / BAE Systems Group plc and any of its subsidiaries by KPMG from 1997-2007 in relation to the commissions paid by BAE through any route to subsidiaries, agents and any connected companies. Also any other professional advice, consultancy or tax work provided to BAE by KPMG between those dates in respect of (i) commission payments paid by BAE and (ii) the status, operation or disclosability of Red Diamond Trading Ltd., Poseidon Trading Investments Ltd. and Novelmight Ltd.
The Financial Reporting Council press release is here.
0 Responses to “KPMG Investigated Over BAE Audits”