A court in Dubai has ordered KPMG Lower Gulf to pay more than $231 million to a group of investors one of the largest ever against an accounting firm – for losses made by them, the Financial Times reported.
According to the report, the investors claimed that they lost money because of poor-quality audit work by the firm on a fund they were invested in collapsed private equity firm Abraaj Group.
The ruling according to the newspaper was issued late last month and found the firm breached international auditing standards by approving the financial statements.
“The court has concluded from the papers, documents and the report of the appointed expert committee that it is confident that the auditing company had committed many violations when it audited the financial statements of the investment fund,” the court ruling said.
In a statement sent to Financial Times, KPMG Lower Gulf said they have strong grounds to appeal and had taken the case to the court of cassation, or supreme court.
