UK accounting watchdog fines KPMG $1.7 million for Carr’s Group audit breaches

(Reuters) -The British accounting watchdog imposed a penalty of 1.25 million pounds ($1.7 million) on audit firm KPMG LLP on Thursday as a result of an investigation into the financial audit of UK manufacturing firm Carr’s Group.

KPMG and audit engagement partner Nick Plumb failed to ensure compliance with applicable independence requirements, the Financial Reporting Council said.

"In this case, whilst the quality of the audit work performed by the two firms is not brought into question, the breaches were serious," FRC Deputy Executive Counsel Jamie Symington said in a statement published on its website.

($1 = 0.7374 pounds)

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sonia Cheema)