AADB investigating KPMG Audit Plc and individual ICAEW and CIMA members in connection with the report and accounts of Equity Red Star
News types: Investigations
Published: 6 March 2012
The Accountancy and Actuarial Discipline Board (AADB) of the FRC has launched an investigation under its Accountancy Scheme into the conduct of ICAEW and CIMA Members and of KPMG Audit plc, auditors of Lloyds Syndicate 218 which trades as Equity Red Star.
The managing agent of Equity Red Star is Equity Syndicate Management Limited, which is also a corporate member of the Syndicate.
The scope of the investigation covers:
“The conduct of Members and Member Firms in relation to the preparation and audit of Equity Red Star Motor Syndicate 218 Report and Accounts for the years ended 31 December 2007, 2008 and 2009 with particular reference to technical provisions”.
The AADB’s decision to initiate an investigation was taken following consultation with the ICAEW and CIMA.
The AADB is independent of the professions it disciplines and operates in the public interest.
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The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.
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The Accountancy and Actuarial Discipline Board ("AADB") is the independent, investigative and disciplinary body for accountants and actuaries in the UK. The AADB is responsible for operating and administering independent disciplinary schemes for these professions. The Accountancy Scheme covers Members of the following accountants' professional bodies:- the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, the Institute of Chartered Accountants in Ireland, the Institute of Chartered Accountants of Scotland and the Institute of Chartered Accountants in England and Wales. The Actuarial Scheme covers Members of the Institute and Faculty of Actuaries (formerly the Institute of Actuaries) and the Faculty of Actuaries (prior to its merger with the Institute of Faculty of Actuaries).
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The focus of the AADB is on cases which raise important issues affecting the public interest; other disciplinary cases will continue to be dealt with by the relevant professional body. The purpose of an investigation is to determine whether there is evidence of misconduct on the part of Members or Member Firms of the professional bodies. An investigation does not always mean that an allegation has been made or that there is evidence of misconduct on the part of the Member or Member Firm involved.
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Disciplinary complaints filed following an AADB investigation are heard by an independent Tribunal which will normally sit in public. If the Tribunal upholds a complaint, there is a wide range of sanctions which it can impose including an unlimited fine, exclusion from membership of a professional body covered by one of the Schemes and withdrawal of practising certificates or licenses.