KPMG’s partner, who led the audit of British outsourcer Carillion, was suspended from the company more than a year later and was provided to accounting regulators until it remained “shocked, devastated and angry.” He said he knew nothing about the forgery of.
Peter Meehan appeared in industry court on Monday and participated in the claims of him and his younger colleagues by the Financial Reporting Council. “Created” document It misleads Watchdog into assuming that it was created during an audit of Carillion’s 2016 financial statements. The outsourcer collapsed in January 2018 with a debt of £ 7 billion.
Mihan, who became a partner of the Big Four accounting firms in 1998, Leaving KPMG “by agreement” in January 2021More than two years after the company stopped him Suspected cheating..
Mihan denied his allegations and blamed more Junior colleague..
In a witness statement filed in court on Monday, Mihan said his reputation was “probably irreparable” by allegations, and the resulting “emotional and physical stress” affected his well-being. Said that he gave.
“I found it incomprehensible that the members of the audit team were facing the documentation at that time. [FRC’s audit quality inspection], And me [inspection] The team confirmed that these documents were not simultaneous with the 2016 audit, “he said.
The court heard that the missing documents from the audit file included the minutes of an overseas audit completion meeting attended by Mihan and senior manager Richard Kitchen.
Meehan’s team was informed to the court that after the FRC raised the question, he and Kitchen used handwritten notes to prepare the minutes of the meeting.
Meehan denied that he was not involved in the creation of the document or instructed the team to enter a note following the FRC inquiry.
Under a cross-examination by FRC’s Mark Ellison QC, he assumed that the notes entered were simply excluded from the file and said he “did not notice the minutes entered.” .. .. Could not be located. ”
It wasn’t. .. .. It’s rare for things to be excluded from files and left in people’s emails, “he said.
When asked why he handed a handwritten note of the meeting to a junior colleague following a question from the inspector, Mihan said, “in case the minutes entered were not found.” If so, his notes can be shared in their original format. ..
Ellison suggested that Mihan was “easy and not an untouched boss.” au fait Depending on the thing [his] The team was doing, “he knew in detail how his team was tackling the issues raised by the inspectors.
He gave the example of Mihan dialing into a meeting between KPMG and FRC inspectors from Madeira Airport in October 2017 after a flight was delayed.
“I believed I was qualified … Relying on senior management to provide the FRC with true information and genuine documentation,” said Mihan, who joined KPMG’s predecessor Pete Marwick in 1983. ..
“I thought my approach in this regard was out of step with the other auditing partners I spoke to that were audited. [inspections],” He said.
KPMG Admitted that the FRC was misunderstood However, he denied that the allegations pointed to a systematic problem with the company.
Meehan’s juniors Alistair Wright, Kitchen, Adam Bennett, and Pratik Paw have each denied allegations of misconduct. Another auditor, Steuart Smith, has settled with the FRC.
The hearing will continue.
KPMG partner said he was unaware of alleged forgery of Carillion audit documents Source link KPMG partner said he was unaware of alleged forgery of Carillion audit documents
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