KPMG Admits “Astonishing” Misconduct, Accepts Record Fine
The firm edited workpapers ahead of examinations, and had employees cheat on certification exams…
An article review.
We rely on accounting firms to provide us with accurate, unbiased information, but it appears that KPMG—one of the largest firms in the world—has been engaging in misconduct that the SEC has called “astonishing,” according to an article submitted by our own Adam Reynolds.
Among the issues which led to the SEC issuing a record $50 million dollar fine include allegations KPMG altered audit workpapers ahead of inspections by the Public Company Accounting Oversight Board (PCAOB), and had employees cheat on internal certification exams by allowing employees to share information. The SEC reports that KPMG had made improvements on PCAOB examinations a priority after being found deficient in several examinations in 2018, leading to the recent misconduct.
Public auditing and accounting firms such as KPMG are usually overseen by the PCAOB, but the SEC retains the right to inspect them directly—and will be doing so with KPMG following these allegations, according to the article. Additionally, KPMG has agreed to hire an independent consultant to “review and assess its ethics and integrity controls.”
Original article by Kate Kibson writing for CBS Moneywatch.