SEC fines KPMG $8.2m for independence lapses

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Big Four accountancy firm will have to pay $8.2m to settle charges from the US Securities and Exchange Commission (SEC) arising from a string of audit independence rule violations.

KPMG has two weeks to settle the bill, which was announced in an administrative order on Friday based on an investigation that found KPMG provided non-audit services such as book-keeping to subsdiaries of the companies that it audited. KPMG staff were also found to own shares in KPMG audit clients.

The SEC investigation concentrated on three of the firm’s audit clients and uncovered a string of situations going back as far as 2007 that violated the US independence code and undermined the audits’ compliance with generally accepted auditing standards. The findings in essence were...

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KPMG lapse

The title suggests  lapses happen now and then; is lapse appropriate for consistent behaviour?

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You have to laugh?

"KPMG told AccountingWEB.com it is “fully committed to ensuring our independence with respect to all of our audit clients."

Just not on the ones that were looked at. What are the chances of that?

 

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Auditing Lapses

In the US all of those that were party to the scandal of bank balance sheets bearing no comparison with the reality continue to be called to account. Quite how the big four here who were responsible for signing off this country's big banks' accounts have escaped the same level of scrutiny is a mystery to put it mildly.

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Pull their certificates

Car drivers can be forced to retake their tests if they commit serious or multiple driving offences. Why is the same not true of auditors who commit serious or multiple auditing offences? It is the responsibility of the auditor to perform checks for independence, so they clearly need to be re-tested on their abilities if they fail to do so.

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