Comments on: KPMG Has A $1 Billion New Century Problem http://retheauditors.com/2009/04/02/kpmg-has-a-1-billion-new-century-problem/ The Business of the Big 4 Audit Firms Tue, 16 Mar 2010 16:58:22 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: re: The Auditors » Blog Archive » In Pari Delicto: Are Auditors Equally At Fault In The Big Fraud Cases? http://retheauditors.com/2009/04/02/kpmg-has-a-1-billion-new-century-problem/comment-page-1/#comment-92874 re: The Auditors » Blog Archive » In Pari Delicto: Are Auditors Equally At Fault In The Big Fraud Cases? Thu, 11 Mar 2010 14:20:07 +0000 http://retheauditors.com/?p=1466#comment-92874 [...] deepening insolvency arguments have been shot down by no less than Judge Posner whose pernicious pragmatism forces him to engage in the self-delusion that helping companies remain [...] [...] deepening insolvency arguments have been shot down by no less than Judge Posner whose pernicious pragmatism forces him to engage in the self-delusion that helping companies remain [...]

]]> By: re: The Auditors » Blog Archive » Suing Audit Firms re: Madoff: The Iguana In The Room http://retheauditors.com/2009/04/02/kpmg-has-a-1-billion-new-century-problem/comment-page-1/#comment-57680 re: The Auditors » Blog Archive » Suing Audit Firms re: Madoff: The Iguana In The Room Mon, 30 Nov 2009 04:24:59 +0000 http://retheauditors.com/?p=1466#comment-57680 [...] “global brand” arguments. Mr. Thomas is applying his principles in the case against KPMG on behalf of the New Century Trustee.  They’ve filed against the US firm in California and against KPMG International in New [...] [...] “global brand” arguments. Mr. Thomas is applying his principles in the case against KPMG on behalf of the New Century Trustee.  They’ve filed against the US firm in California and against KPMG International in New [...]

]]> By: Anonymous http://retheauditors.com/2009/04/02/kpmg-has-a-1-billion-new-century-problem/comment-page-1/#comment-5728 Anonymous Tue, 09 Jun 2009 19:39:29 +0000 http://retheauditors.com/?p=1466#comment-5728 @SS - what mistreatment is being dished out? Are they just angry because they were laid off - and do not think they should have been chosen? Are you talking about the overtime pay lawsuit? That is only a handful of employees - but they are attempting to make it class action. It is tenuous at best IMO. If these employees win the overtime pay it will completely chance the situation for new college grads. Odds are their hourly rate will decrease dramatically - and their overall pay with overtime will be similar to their current salaried. In addition, once the staff member wants to transition to exempt status -- i.e., get promoted... at that time a lot of staff will get cut as they will likely have to "apply" for the position rather than be promoted into it. @SS – what mistreatment is being dished out? Are they just angry because they were laid off – and do not think they should have been chosen? Are you talking about the overtime pay lawsuit? That is only a handful of employees – but they are attempting to make it class action. It is tenuous at best IMO. If these employees win the overtime pay it will completely chance the situation for new college grads. Odds are their hourly rate will decrease dramatically – and their overall pay with overtime will be similar to their current salaried. In addition, once the staff member wants to transition to exempt status — i.e., get promoted… at that time a lot of staff will get cut as they will likely have to “apply” for the position rather than be promoted into it.

]]> By: SS http://retheauditors.com/2009/04/02/kpmg-has-a-1-billion-new-century-problem/comment-page-1/#comment-5726 SS Tue, 09 Jun 2009 19:16:58 +0000 http://retheauditors.com/?p=1466#comment-5726 Client lawsuits aside, KPMG's former employees (not just 2 or 20 but 100s of them) have filed a lawsuit against the firm for the mistreatment dished out by the firm to their employees. Everyday we are receiving partner emails stating that some of the current employees will be questioned. Isn't that amazing? It goes to show what a slaughterhouse this firm is. If I didn't have any responsibilities I would rather sit at home than work for them. Client lawsuits aside, KPMG’s former employees (not just 2 or 20 but 100s of them) have filed a lawsuit against the firm for the mistreatment dished out by the firm to their employees. Everyday we are receiving partner emails stating that some of the current employees will be questioned. Isn’t that amazing? It goes to show what a slaughterhouse this firm is. If I didn’t have any responsibilities I would rather sit at home than work for them.

]]> By: re: The Auditors » Blog Archive » BDO International: “Manage and Control” Means Slam Dunk For BES http://retheauditors.com/2009/04/02/kpmg-has-a-1-billion-new-century-problem/comment-page-1/#comment-5644 re: The Auditors » Blog Archive » BDO International: “Manage and Control” Means Slam Dunk For BES Sun, 07 Jun 2009 03:00:19 +0000 http://retheauditors.com/?p=1466#comment-5644 [...] is Thomas limbering his fingers and toes for the big prize, US$1 billion dollars or more from KPMG International for New Century?  Is Thomas going to be the one to bring the monster suit against PwC International for Satyam? I [...] [...] is Thomas limbering his fingers and toes for the big prize, US$1 billion dollars or more from KPMG International for New Century?  Is Thomas going to be the one to bring the monster suit against PwC International for Satyam? I [...]

]]> By: re: The Auditors » Blog Archive » Auditors Not Trying To Wiggle Off The Hook. Really. http://retheauditors.com/2009/04/02/kpmg-has-a-1-billion-new-century-problem/comment-page-1/#comment-4079 re: The Auditors » Blog Archive » Auditors Not Trying To Wiggle Off The Hook. Really. Mon, 27 Apr 2009 02:21:15 +0000 http://retheauditors.com/?p=1466#comment-4079 [...] KPMG and New Century [...] [...] KPMG and New Century [...]

]]> By: KPMG Has A $1 Billion New Century Problem http://retheauditors.com/2009/04/02/kpmg-has-a-1-billion-new-century-problem/comment-page-1/#comment-3890 KPMG Has A $1 Billion New Century Problem Mon, 20 Apr 2009 10:17:30 +0000 http://retheauditors.com/?p=1466#comment-3890 [...] News Sources wrote an interesting post today onHere’s a quick excerptFrom Jennifer Hughes in the Financial Times:“KPMG is being sued for $1bn by the liquidators of New Century, the collapsed subprime lender, in the first big case against an auditor arising from the current financial crisis.In a court filing on Wednesday, lawyers for New Century’s liquidators claimed that KPMG “assisted in the misstatements and certified the materially misleading financial statements” filed by the lender. They claim KPMG was responsible for its collapse because it allowed the lend [...] [...] News Sources wrote an interesting post today onHere’s a quick excerptFrom Jennifer Hughes in the Financial Times:“KPMG is being sued for $1bn by the liquidators of New Century, the collapsed subprime lender, in the first big case against an auditor arising from the current financial crisis.In a court filing on Wednesday, lawyers for New Century’s liquidators claimed that KPMG “assisted in the misstatements and certified the materially misleading financial statements” filed by the lender. They claim KPMG was responsible for its collapse because it allowed the lend [...]

]]> By: re: The Auditors » Blog Archive » The Plot Thickens - Price Waterhouse India Plausibly Culpable http://retheauditors.com/2009/04/02/kpmg-has-a-1-billion-new-century-problem/comment-page-1/#comment-3882 re: The Auditors » Blog Archive » The Plot Thickens - Price Waterhouse India Plausibly Culpable Mon, 20 Apr 2009 03:11:33 +0000 http://retheauditors.com/?p=1466#comment-3882 [...] “alleged” negligence and complicity by auditors, such as in the recent lawsuit against KPMG in the New Century case, there are often others both in the company and in the firm who tried to tell the audit partners [...] [...] “alleged” negligence and complicity by auditors, such as in the recent lawsuit against KPMG in the New Century case, there are often others both in the company and in the firm who tried to tell the audit partners [...]

]]> By: Anonymous http://retheauditors.com/2009/04/02/kpmg-has-a-1-billion-new-century-problem/comment-page-1/#comment-3422 Anonymous Mon, 06 Apr 2009 04:54:19 +0000 http://retheauditors.com/?p=1466#comment-3422 @12 -- aren't the law suits part and parcel with the economic downturn? Layoffs are directly related to the economy, nothing more. Law suits that are justified and lead to guilty verdicts lead to firings... but as long as the economy is strong, the innocent staff are absorbed by other partners. Besides, this law suit is a complaint that the auditor did not adequately represent the state of the financials that lead to bankruptcy. If there was no economic downturn would there be a bankruptcy, would there have been anything for the auditors to miss, would the partner have pressure to tell his staff to look the other way (allegation, not a proven act mind you). Do you really think layoffs are due to a law suit that may or may not lead to a large settlement? If there is to be a large settlement, the firm needs to earn the money to pay it out... they need work and staff members to perform that work. This is how we line the partner's pockets (as many on this blog think) with money that they do not deserve... but no one empathizes with the risk they take which takes that wealth away from them. I am not willing to take that risk - are you? You may be a partner of the highest integrity, and some other corrupt partner messes it all up for you. You take on not only your own risk, but that of every other partner in the firm. They aren't that wealthy - not really. @12 — aren’t the law suits part and parcel with the economic downturn? Layoffs are directly related to the economy, nothing more. Law suits that are justified and lead to guilty verdicts lead to firings… but as long as the economy is strong, the innocent staff are absorbed by other partners. Besides, this law suit is a complaint that the auditor did not adequately represent the state of the financials that lead to bankruptcy. If there was no economic downturn would there be a bankruptcy, would there have been anything for the auditors to miss, would the partner have pressure to tell his staff to look the other way (allegation, not a proven act mind you). Do you really think layoffs are due to a law suit that may or may not lead to a large settlement? If there is to be a large settlement, the firm needs to earn the money to pay it out… they need work and staff members to perform that work.

This is how we line the partner’s pockets (as many on this blog think) with money that they do not deserve… but no one empathizes with the risk they take which takes that wealth away from them. I am not willing to take that risk – are you? You may be a partner of the highest integrity, and some other corrupt partner messes it all up for you. You take on not only your own risk, but that of every other partner in the firm. They aren’t that wealthy – not really.

]]> By: fm http://retheauditors.com/2009/04/02/kpmg-has-a-1-billion-new-century-problem/comment-page-1/#comment-3408 fm Sun, 05 Apr 2009 12:35:41 +0000 http://retheauditors.com/?p=1466#comment-3408 @Anonymous 10:46 Fixed. Should not have implied he was taking charge of the group. Although, maybe Mr. Leva just doesn't know it yet. Francine @Anonymous 10:46

Fixed. Should not have implied he was taking charge of the group. Although, maybe Mr. Leva just doesn’t know it yet.
Francine

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