The UK Accountancy and Actuarial Discipline
Board (AADB) has launched an investigation into KPMG’s audit of the
Lloyd’s of London syndicate Equity Red Star. 

The probe follows a consultation with the
ICAEW and CIMA

The AADB will focus on KPMG’s audit work as
well as the work of accountants who prepared financial reports and
accounts for the year ends 31 December 2007, 2008 and 2009.

KPMG told the International Accounting
Bulletin it will co-operate fully with the AADB’s
investigation and is “confident that its audit work in relation to
the Equity Red Star syndicate met the relevant professional
standards”.