KPMG fined £3.2m for its failings during the audit of Quindell

Auditing company, KPMG has been fined £3.2m by the Financial Reporting Council (FRC) for its wrongdoings during the audit of Quindell.

The legal services firm twice restated its accounts, leading to heavy losses.

KPMG, along with an employee, William Smith, failed to ensure Quindell’s financial statements for 2013 and 2014 were free from misstatement.

William Smith himself was given a fine of £84,000 for his failings.

In a statement, KPMG apologised for failing to press Quindell’s management further regarding its accounts.

A spokesman for KPMG said: “We accept the FRC’s findings that in two specific areas of the audit, our challenge for the year ended 31 December 2013 should have gone further.”

The company is also under investigation by the FRC for its auditing of the collap[se construction company, Carillion.

Quindell, which has since been rebranded as Watchstone, is still being investigated by Britain’s Serious Fraud Office and the FRC over its business and accounting practises.

Originally, KPMG and Smith’s fine were £4.5m and £120,000 respectively, but as both agreed to settle, were given a discounted fine.