Connect the Dots

Organization

Carillion

U.K. construction and services company with large public contracts that went into liquidation in January 2018.

3 links, 3 backed by primary records. 3 more in open data

Play the story Explore connections

Wikidata
Q5039561
Over time
  1. awarded a contract to KPMG in the U.K. (29M GBP, statutory auditor) 1999–2017
  2. awarded a contract to Deloitte in the U.K. (internal auditor) 2010–2017

Connections 3

awarded a contract to

  • KPMG in the U.K. 1999–2017 29M GBP, statutory auditor Primary record 12

    Audit fees over 19 years, as counted by two House of Commons committees. KPMG said its independence was not impaired after 19 years.

  • Deloitte in the U.K. 2010–2017 internal auditor Primary record 1
  • EY 2017 transformation programme after the July 2017 profits warning Primary record 1

    The committees’ report names EY, not a member firm.

Timeline 3 dates
  1. 1999–2017 Carillion awarded a contract to KPMG in the U.K.
  2. 2010–2017 Carillion awarded a contract to Deloitte in the U.K.
  3. 2017 Carillion awarded a contract to EY
Proof 2 sources
  1. Carillion: Joint Report of the Business, Energy and Industrial Strategy and Work and Pensions Committees (HC 769), UK House of Commons (Business, Energy and Industrial Strategy and Work and Pensions Committees), 16 May 2018. Primary record Archived copy
    Over 19 years, KPMG charged Carillion £29 million in audit fees, alongside additional charges for taxation and other assurance services.
    KPMG said that its independence was not impaired after 19 years auditing Carillion.
    Such a long tenure inevitably calls into question whether they could provide the independence and objectivity that is crucial to high-quality audit.
    Carillion’s financial statements show that over that period, KPMG never found reason to offer a qualified audit opinion on the accounts.
    Deloitte acted as Carillion’s internal auditors, charging on average £775,000 a year since 2010.
    Although Deloitte made a number of recommendations through their internal audit reports, they rarely identified issues as high priority. Only 15 out of 309 recommendations between 2012 and 2016 were deemed as such.
    Over the course of the last decade, they collectively received £51.2 million for services to Carillion, a further £1.7 million for work for the company’s pension schemes and £14.3 million from Government for work relating to contracts with Carillion.
    EY, another member of the Big Four, were particularly heavily involved with Carillion after the profits warning in July 2017.
    Carillion paid them £10.8 million over a six-month period
  2. Sanctions against KPMG LLP, KPMG Audit plc and two former partners, Financial Reporting Council, 12 Oct 2023. Primary record
    Prior to going into liquidation in January 2018, Carillion was a leading UK based multinational construction and facilities management services company.
Page history 1 change
  1. Add 55 stories, each checked against its sourcesAlibek96e92fe6

Something wrong or missing? Tell us, with a source, or edit this page.