KPMG fined £3.4m over ‘serious failures’ in Rolls-Royce audit

Regulator says accountants' audit of jet engine maker failed to report payments to Indian intermediaries

KPMG will pay a fine of 3.4m to the accounting regulator after accepting failures in its audit of Rolls-Royce, the British jet engine manufacturer that paid a 500m settlement after bribery allegations.

The accountancy firm received a severe reprimand from the regulator, the Financial Reporting Council (FRC), and the firm will have to commission an independent review into the effectiveness of its policies.