KMPG criticised in scandal report

KMPG, one of the country’s largest accountancy firms, has had adverse findings made against it in the inspectors’ report into the affairs of National Irish Bank.

The firm was one of 19 parties who were criticised by the two inspectors, former Judge John Blayney and accountant Tom Grace.

KPMG had acted as external auditors to the bank, which was criticised yesterday for engaging in assisting customers evade tax, and also for overcharging thousands of customers.

The Institute of Chartered Accountants in Ireland are studying the report to see if disciplinary action needs to be taken against KPMG.

KPMG were not available for comment last night.

Former chief executive of National Irish Bank Jim Lacey, who was also criticised in the report, is also a member of the ICAI.

A spokesman for the body would not comment on whether he faces disciplinary action. Two years ago KPMG were forced to pay out €430,000 after an inquiry by the Institute of Chartered Accountants in Ireland into its auditing of engineering firm Powerscreen found it fell below standards.

A Committee of Inquiry set up by the ICAI said the audit of Powerscreen and Matbro “in terms of efficiency and competence, fell below the standard to be expected of an auditor regulated by the ICAI”.