Senior partner and firm hit with major sanctions

A SENIOR partner at KPMG’s Newcastle office and the wider professional services firm have been fined by sector watchdog the Financial Reporting Council (FRC).

- TOM KEIGHLEY

Nick Plumb, audit engagement partner, and his employer have been handed £70,000 and £1.25m sanctions respectively, discounted to £38,675 and £690,625 for cooperation with an investigation. The probe was launched two years ago into their handling of a statutory audit of North West-based agricultural and engineering services business Carr's Group.

Mr Plumb and KPMG were found to have breached the FRC’s 2019 Ethical Standard and International Standards on Auditing because they relied on the work of a third party firm which provided a statutory audit of Carr’s Billington Agriculture (Operations) Limited, an associated company.

The unnamed firm's audit engagement partner had held the role for more than five years and the business had provided tax and accountancy services to the business.