LONDON (AP) — Audit, tax and advisory firm KPMG LLP is being investigated by British regulators over audits it carried out for arms manufacturer BAE Systems PLC.
The Accountancy and Actuarial Discipline Board said Tuesday it was looking into commissions paid by BAE and also "professional advice, consultancy and tax work" carried out by KPMG between 1997 and 2007.
KPMG says the company doesn't believe there has been any act of misconduct and is cooperating with the inquiry.
If found guilty of misconduct, KPMG faces an unlimited fine and the potential banning of executives from the industry.
BAE earlier this year agreed to pay record fines totaling around $450 million in Britain and the United States to settle long-running corruption allegations relating to deals in Saudi Arabia and Tanzania.
