Structural risks
These risks apply to every KPMG product. They are legal obligations and corporate
practices that individual products cannot override. A subsidiary cannot opt out of an
FTC consent decree. A company cannot selectively ignore its home country's intelligence
law for one product. These risks set a grade floor of
F — no KPMG product
can score better than this, regardless of its own privacy settings.
critical
FRC record £21.4M fine for Carillion audit failures
2023-10-12
KPMG fined £21.4M for "damning" failures auditing Carillion in the 3 years before its collapse. Carillion was a major public contractor. KPMG's UK chief admitted the work was "very bad over an extended period" and he "simply cannot defend" it. Staff forged and manufactured documents to mislead FRC during spot checks.
critical
Staff forged documents to mislead FRC regulator
2023-10-12
During FRC spot checks on KPMG's Carillion and Regenersis audits, former KPMG employees forged and manufactured missing documents. FRC counsel described the conduct as deliberate fabrication to cover audit deficiencies.
critical
Stole confidential PCAOB inspection data ($50M fine)
2019-10-01
KPMG executives recruited former PCAOB employees to steal confidential inspection data (2015-2017), learning in advance which audits would be inspected to "game the system." Five former KPMG executives and PCAOB employees charged with conspiracy and wire fraud. KPMG's former head of National Office sentenced to prison. $50M SEC penalty.
critical
South Africa VBS Bank: auditor "complicit in cover-up"
2018-10-14
KPMG gave VBS Mutual Bank a clean bill of health in 2017, months before it collapsed with R2 billion looted. Investigator concluded looting "would not have been possible had KPMG not signed off." Auditor found complicit in cover-up. Eight top KPMG staff resigned. Firm lost one-third of revenue. Audit partner debarred for life.
critical
Australia: leaked confidential board papers to win tenders (2025)
2025-03-01
KPMG allegedly shared confidential Lendlease board papers to support bids for Westpac and Dexus audit tenders. CEO and top auditor resigned. ASIC launched investigation into three partners. KPMG suspended bidding for federal work. $650M in federal contracts at risk.