Tough Times for KPMG…

By • May 5th, 2007 • Category: Pure Content

KPMG has had a tough couple of weeks. Aren’t they still on double-secret probation with the SEC, DOJ and IRS?

Not that the other firms have been such good boys either…They probably should have a meeting at the clubhouse soon.

Deloitte is still the pot calling the kettle black in the Siemens scandal. But they’ve done a good job lately getting themselves out of trouble. And even though they’ve had their share of rejection, they’d probably claim it’s because they’re just too good. In the end, money can buy happiness.

Ernst and Young is quietly going about its business the same old way it always did, non-independently. And they continue to try the patience of the PCAOB. They’re also good at getting rid of problems by throwing money at them. But they try hard to keep spirits up, when they’re not working people to death.

And PwC, oh my dear PwC, I want to pat you on the back and kick you in the ass all at the same time. But your superior attitude and wonderful partner camaraderie will hold you in good stead, even as you lose clients and weather storms. You’re good at getting out of things too, which shows a dollar still goes a long way in Washington DC.

Unfortunately, KPMG’s troubles these past couple of weeks are a little bit worse than the average suit settlement or client loss.

In order to defend themselves against suits at Fannie Mae, they’re having to claim they were duped. That’s a tough pill to swallow.

Their submarine has been torpedoed by Siemens. Maybe the British should think twice about getting mixed up with those Germans.

“Fool me twice, shame on me” at New Century. But at least they got out before being pushed out.

They’re not coming off as badly as the Audit Committee is in the Hollinger lawsuit, but not by much. How could KPMG (or the SEC?) allow Hollinger to continue with an Audit Committee that lacked the required financial expert?

Imagine being Marie-Josee “O Henry!” Kravis, Jim ” Skim Milk With My Latte” Thompson and Richard ” My duty is attending meetings, not falling asleep and giving management my best advice” Burt! They’ve had to tell everyone they were duped to avoid trouble with the SEC. Unfortunately they probably won’t get off so easy with shareholders after these admissions.

Maybe KPMG can take comfort in the optimism of their clients. Next year is going to be peachy, that is, if they’re still around…

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5 Responses »

  1. [...] as well have been… Looks like all those three did was “bend over” and “get down on their knees”, two of Paris’ [...]

  2. [...] have weighed in before on KPMG and its problems. Although I have many friends and former colleagues there, all good people, I will reiterate. I [...]

  3. [...] of them or are the bad guys the partners, the “rogue partners,” who tarnished the good name of KPMG in the pursuit of personal wealth and glory? There are already enough judges involved in trying this [...]

  4. [...] June of 2007, PwC had caved to the pressure from the Kremlin. Looks like PwC is claiming the “we were duped” defense. (Do any of my attorney readers know which firm that defends the Big 4 came up with this brilliant [...]

  5. [...] There were no SEC or PCAOB disciplinary actions against PwC for the Yukos scandal.  I started writing about Yukos in March of 2007. That’s more than four years ago! Reports have been open and consistent in saying PwC was pressured to withdraw ten years of audits as part of a Russian government prosecution of former Yukos chief Mikhail Khodorkovsky and his business partner Platon Lebedev. PwC is using the “we were duped” defense. [...]

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