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    Update: KPMG: The Indictments

    Saturday, April 21st, 2018

    Just a reminder to my readers: The mystery outside consulting firm that helped KPMG analyze the data Brian Sweet andCynthia Holder allegedly brought over from the PCAOB is still a mystery. It’s also a mystery why any firm like KPMG, who touts a new KPMG MAcc focused on data analytics, would have to hire an outside firm to crunch data. That’s unless KPMG is not the only firm that used this outside consultant, and the effort to improve inspection results was a joint effort of more than one firm. I’d love to hear more about this mysterious consulting firm that would do what no one inside KPMG could, or would, do. Leave a comment here, one I can leave unposted, if you wish to communicate confidentially or DM me on Twitter @retheauditors for Signal encrypted confidential messaging instructions.



    More on KPMG and the Precedents for Possible Punishment

    Sunday, April 23rd, 2017

    Why did they do it? The WSJ walks around the question but KPMG may face big fines and, I think, its partners and the PCAOB professional could face criminal charges.



    KPMG Takes Its Turn With a Big 4 -Sized Scandal

    Monday, April 17th, 2017

    The KPMG/PCAOB scandal is neither the first or last time a Big 4 firm reminded us that there’s nothing special anymore about being a Big 4 firm professional The firms, and their partners, are not capitalist eunuchs, immune from perverse incentives that advocates for free markets say, if big enough, can corrupt anyone.



    McKenna Interviewed On KPMG And FIFA By The Bottom Line Canada

    Monday, October 19th, 2015

    I was interviewed by The Bottom Line magazine in Canada back in June on KPMG’s role as auditor of FIFA.



    US Department of Justice v KPMG: Document Shows “Too Few To Fail” Was Opening Premise

    Saturday, April 19th, 2014

    A new KPMG tax shelter era document surfaced, in original format, that had not yet been cited or quoted from in any media reports. The document tells us that late in the negotiations, June 27, 2005 the DOJ still would not agree to all of KPMG’s terms, including promising not to criminally charge the firm. But the decision to make sure the firm did not “go under” had already been made. KPMG and its Skadden attorneys only had to make sure the DOJ didn’t, in a misguided show of sheer aggressiveness, cause another Arthur Andersen.



    Not That Satisfying: SEC Slams KPMG For Independence Violations

    Tuesday, January 28th, 2014

    It’s been almost three years since I first broke the story of KPMG’s loaned tax staff arrangement with audit client GE. On January 24 the Securities and Exchange Commission (SEC) announced an $8.2 million settlement with KPMG over violations of auditor-independence rules. The wheels of justice turn very slowly. But the GE case was not one of the three cited as the subject of the enforcement action.



    How KPMG Explains Scott London To The Accounting Professors

    Monday, April 29th, 2013

    Here’s how KPMG Chairman John Veihmeyer explained Scott London’s inside trading and the firm’s response to accounting professors, an important stop in the audit industry supply chain.



    Early Returns: Scott London, KPMG and Another Partner Trading On Inside Information

    Monday, April 15th, 2013

    This is the fourth big insider trading case in the least few years against a senior tenured partner that betrayed the public’s trust. In none of the cases did the firm’s “extensive” and “comprehensive” independence compliance programs spot the behavior or the illegal actions. Stay tuned. There will be much more to this story, I guarantee.



    KPMG Nixes GE Loaned Tax Staff Engagement

    Thursday, January 26th, 2012

    KPMG will no longer loan tax professionals to GE during busy season, according to a source close to the situation. KPMG was billing an extra $8-10 million, over and above the audit each year, for the service. Loaning, assigning, or “seconding” tax or any “bookkeeping” staff to an audit client is prohibited by the Sarbanes-Oxley Act […]



    KPMG May Answer For GE Tax Work

    Wednesday, September 21st, 2011

    Going Concern reported yesterday that KPMG professionals have been ordered to preserve all correspondence and documentation related to the tax “loaned staff” assignment it has with long-time client GE. That means someone – the SEC or PCAOB – is investigating.