Editing KPMG (section)

== Controversies and Challenges ==
KPMG has faced scrutiny over its audit practices, notably in the '''Carillion collapse''' (2018), where the UK’s Financial Reporting Council (FRC) criticized the firm’s role, leading to a disciplinary hearing in 2022. In response, KPMG UK ceased providing consultancy services to FTSE 350 audit clients to eliminate conflicts of interest. Other investigations involved audits of '''HBOS''', '''Conviviality''', and '''The Co-operative Bank'''.

The firm has also settled lawsuits, including:

* '''$456 million''' in fines for tax shelter fraud in the U.S. (2005).
* '''$830 million''' claim in Hong Kong over China Medical Technologies’ fraud (ongoing).

KPMG has since strengthened its governance, revised its partnership model, and invested in ethical training to rebuild trust.