Comments on: New Century Financial – It’s KPMG Again

By: re: The Auditors » Blog Archive » They Weren’t There: Auditors And The Financial Crisis

Mon, 07 Dec 2009 23:48:55 +0000

[...] since 2007. My first post to mention subprime was March 14, 2007. In that post, discussing KPMG and New Century, I talked about something that even the esteemed short David Einhorn missed: Repurchase risk was [...]

By: re: The Auditors » Blog Archive » KPMG And New Century - The Deed Was Done

Thu, 02 Apr 2009 03:29:29 +0000

[...] blog has tracked this story from the beginning. Go here, here, here and here for [...]

By: Anonymous

Anonymous — Thu, 27 Mar 2008 17:50:00 +0000

As an ex-auditor in public practice, it is very tough to successfully sue the auditors. It’s too early to presume anything (auditors at fault or the company). In short, the root of this issue will be whether or not KPMG should have been aware of the risk and was the disclosure that was made – was it adequate. Obviously, the only way to determine what KPMG knew and when is through a long draw-out legal battle, and more than likely, that is what we will see. That is unless KPMG can figure out another way to score a deal with the Dept. of Justice like it did when it had it’s tax-shelter debacle (They created a tax shelter investment vehicle known as Blips which cut the gov’t out of a good amount of tax dollars) a couple of years ago. Who knows. The funny thing is the KPMG audits a good chunk of the Federal Gov’t. I think they’ll figure out a way to at least minimize the damage of their own auditors.

By: Anonymous

Anonymous — Thu, 27 Mar 2008 14:52:00 +0000

it is very difficult to sue the auditor. So… who really cares. It is not the first time for an auditor to cook the books.