KPMG is to pay penalties of £1.65m for its role as auditor to Independent Insurance, the flamboyant insurer that collapsed in 2001 following an accounting fraud that saw its chief executive and financial director jailed.
The accounting firm is paying a £495,000 fine and £1.15m in costs to the profession’s Joint Disciplinary Scheme, funded by the two main chartered accountancy institutes, which pursues independent investigations into the conduct of members. Andrew Sayers, lead partner on Independent’s audit, was fined £5,000.
