Equity red star claims

KPMG was hit with a jumbo £6 million penalty today over the audit of a distressed Lloyd’s of London motor insurer, fuelling debate over a proposed shake-up of the Big Four. The Financial Reporting Council severely reprimanded the professional services giant, which also audited collapsed outsourcer Carillion, for its work on Equity Red Star, a motor underwriter which nearly went bust a decade ago.  The size of the fine, which nearly tops the £6.5 million levied on PwC for the audit of BHS, underscores the growing mood among authorities to beef up oversight of the Big Four accountants.  Last month the competition watchdog laid proposals to force the four — PwC, EY, Deloitte and KPMG — to work with smaller rivals to end their dominance.  Equity Red Star, one of Lloyd’s few motor underwriters, was placed under investigation by regulators in 2010 after huge underwriting losses forced it to seek a bailout from former parent company Insurance … [Read more...] about KPMG slapped with £6m fine for ‘insufficient’ motor insurer audit