relating to deficient audit work for Quindell (now known as Watchstone)relating to its 2013 financial statements. The Abu Dhabi Accountability Authority (ADAA) which monitors Abu Dhabi government-owned and related entities removed KPMG’s Lower Gulf affiliate from its list of authorized auditors that can sign off on financial statements. In December, US accounting regulator Public Company Accounting Oversight Board announced that its inspectors discovered that hundreds of KPMG employees in UK and Colombia affiliates cheated on their compliance exams. In addition, inspectors also discovered document alterations to deceive inspectors in KPMG's Colombia affiliate, and blank audit papers signed by an KPMG affiliate audit partner in India. KPMG LLP has agreed to pay US$7.7 million in fines. This follows a US$50 million fine in 2019 where KPMG employees were using data stolen from PCAOB to identify which audits would be reviewed. Tax shelter fraud In 2003, the IRS issued summonses to KPMG for information about certain tax shelters and their investors. In February 2004, the US Justice Department commenced a criminal inquiry. The United States member firm, KPMG LLP, was accused by the United States Department of Justice of fraud in marketing abusive tax shelters. KPMG fired or forced the retirement of over a dozen who were involved. KPMG LLP admitted criminal wrongdoing in creating fraudulent tax shelters to help wealthy clients avoid $2.5 billion in taxes between 1996 and 2002, and agreed to pay $456 million in penalties to avoid indictment. Under the deferred prosecution agreement, KPMG LLP would not face criminal prosecution if it complied with the terms of its agreement with the government. On 3 January 2007, the criminal conspiracy charges against KPMG were dropped. HBOS audit role The HBOS accounts were published in February 2008 and six months later HBOS had to be rescued by Lloyds Bank. One reason for undertaking an investigation into the audit, was the fact that the audit did not reveal the HBOS Reading branch fraud. HBOS, and subsequently Lloyds Bank, accountant Sally Masterton wrote the Project Lord Turnbull Report which described how the Bank and other organizations reacted to the Reading Branch fraud. This report was highly critical of KPMG and stated, "KPMG have not only just been negligent but their direct involvement in a number of material malpractices and violations regarding HBoS is fundamental and exposes them to claims in relation to misconduct, serious dereliction of duty and breach of regulatory and