The KPMG firms breaching rules over use of component firms and failures to advise audit committees from 2019 to 2022.

Following investigations, the US regulator, the Public Company Accounting Oversight Board (PCAOB) found that each of the nine KPMG firms violated quality control standards related to meeting professional standards, regulatory requirements, and quality standards, and failed to monitor audit procedures.

As a result, KPMG UK was fined $600,000 (£463,000) and must implement remedial action swiftly to address the issues flagged by the PCAOB. Each investigated firm was fined the same amount for the breaches.

In the case of the UK firm, the main issue was that KPMG failed to communicate required disclosures and information to the audit committees of 13 major listed audit clients, including Barclays, British American Tobacco, Prudential Insurance, Smith & Nephew and Unilever, among others.