KPMG: The $38 Billion Lie They Buried copertina

KPMG: The $38 Billion Lie They Buried

KPMG: The $38 Billion Lie They Buried

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An accounting firm altered audit records investigators received - what does this mean for the integrity of financial audits?

KPMG: The $38 Billion Lie They Buried

This episode delves into the case of Carillion, a major British construction company that collapsed after three years of unreliable audits. It explores how a firm like KPMG, with a long history and global reach, came to be involved in such a situation.

Person: Robert Fletcher
Date: January 10, 2022
Location: Britain
Revenue: $38.4 billion
Claim: £1.3 billion

- A disciplinary tribunal established that a spreadsheet had been retroactively edited and meeting minutes created for meetings that never took place.
- Carillion operated for three years without reliable audits, reporting profits and winning government contracts until its collapse in January 2018.
- When audit records were sought after Carillion's collapse, documents were found to have been altered and then submitted to investigators.
- The episode traces the origins of KPMG back to 1816 with Robert Fletcher, detailing the mergers that formed the modern firm.
- Between 1996 and 2002, KPMG marketed tax shelters to wealthy clients that the Department of Justice later concluded were fraudulent, leading to a $456 million settlement.

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