British Lawmakers Say Accountancy Firms Face Questions Over Carillion Collapse

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KPMG and other leading accountancy firms face serious questions over their work with failed construction firm Carillion after making millions of pounds out of their relationships with the company, British lawmakers said on Tuesday. Lawmakers from two parliamentary committees examining the collapse of Carillion said that KPMG had earned 29.4 million pounds ($41 million) from auditing the contractor’s accounts since the company was founded in 1999. The firm signed off on Carillion’s 2016 accounts, shortly before the construction and outsourcing company announced a string of profit warnings, Reuters reported. Carillion collapsed last month with debts of over 2 billion pounds. “KPMG has serious questions to answer about the collapse of Carillion. Either KPMG failed to spot the warning signs, or its judgment was clouded by its cozy relationship with the company and the multi-million pound fees it received,” said Rachel Reeves, chair of the Business, Energy and Industrial Strategy (BEIS) Committee. “KPMG should, as a bare minimum, review its processes and explain what went wrong.” Read more.