KPMG fined €1.75m over audit failings at advertising firm M&C Saatchi

M&C Saatchi has admitted to accounting errors and misjudgments, including £14 million of direct misstatements of profits before tax

KPMG's breaches including a failure to properly audit journal entries across a series of subsidiary companies, and a failure to identify potentially high-risk journals.

Britain’s accounting watchdog has fined KPMG £1.5m (€1.75m) over its failings in the run-up to an accounting scandal at the advertising firm M&C Saatchi.

KPMG and its partner Adrian Wilcox failed to audit with sufficient professional scepticism, according to the Financial Reporting Council, which published a decision notice on Monday. Wilcox was fined £48,750.