KPMG’s UK audits unacceptable, watchdog says

The focus follows criticism of accounting firms in the wake of the collapse of British retailer BHS and building firm Carillion. 

KPMG faced renewed criticism for the quality of its banking audits after the UK’s industry regulator said it was “unacceptable” that, for the third year running, the accounting firm’s work wasn’t up to scratch.

Across the UK’s seven biggest auditing firms – including Ernst & Young and Deloitte – almost 30% of all bookkeeping was below par in the year to the end of March, according to the Financial Reporting Council’s annual report.