June 16, 2005
Another Andersen Style Fall from Grace?
While most people would not accuse the Big Four accounting firms of anything close to humility, I think the Justice Department has to be cautious in taking down each large accounting firm - one by one! At a certain point, who is going to be around to audit these incredibly complex publicly held companies.
Punish them for their assistance in "creative tax avoidance" but do not bankrupt them. Do not send such shudders through the entire industry that there are consequences to the greatest financial markets in the world that cannot be undone.
From CBS News(r):
KPMG Addresses Ex-Partners Unlawful Conduct NEW YORK, June 16, 2005
(AP) Big Four accounting firm KPMG LLP, which has been under investigation by the federal government for selling questionable tax shelters, said Thursday that there was unlawful conduct by some former KPMG partners, but that is has taken steps to prevent it from happening again and is cooperating with the Department of Justice's probe. In a statement, KPMG said it has taken action "to ensure that those responsible for wrongdoing have been separated from the firm."
It did not say in the statement how many people were involved, but said the fim take "full responsibility" for the unlawful conduct. It said it no longer provides the tax services in question and that it has taken steps to make sure such unlawful conduct doesn't happen again. That includes "firm-wide structural, cultural and governance reforms" to ensure "the highest ethical standards," KPMG said.
The anouncement came after The Wall Street Journal reported in Thursday's editions that federal prosecutors have built a criminal case against KPMG for obstruction of justice and the sale of abusive tax shelters. The newspaper said top Justice Department officials are debating over whether to seek an indictment at the risk of killing one of the four remaining big accounting firms. " For the complete article, click here.
If your company needs help in complying with Sarbanes-Oxley and does not have the budget for $500/hour services, then find out more about the Sarbanes-Oxley Compliance Playbook(tm) at www.issuescentral.com and see how you can simplify your compliance project with our free 30 day evaluation.
Punish them for their assistance in "creative tax avoidance" but do not bankrupt them. Do not send such shudders through the entire industry that there are consequences to the greatest financial markets in the world that cannot be undone.
From CBS News(r):
KPMG Addresses Ex-Partners Unlawful Conduct NEW YORK, June 16, 2005
(AP) Big Four accounting firm KPMG LLP, which has been under investigation by the federal government for selling questionable tax shelters, said Thursday that there was unlawful conduct by some former KPMG partners, but that is has taken steps to prevent it from happening again and is cooperating with the Department of Justice's probe. In a statement, KPMG said it has taken action "to ensure that those responsible for wrongdoing have been separated from the firm."
It did not say in the statement how many people were involved, but said the fim take "full responsibility" for the unlawful conduct. It said it no longer provides the tax services in question and that it has taken steps to make sure such unlawful conduct doesn't happen again. That includes "firm-wide structural, cultural and governance reforms" to ensure "the highest ethical standards," KPMG said.
The anouncement came after The Wall Street Journal reported in Thursday's editions that federal prosecutors have built a criminal case against KPMG for obstruction of justice and the sale of abusive tax shelters. The newspaper said top Justice Department officials are debating over whether to seek an indictment at the risk of killing one of the four remaining big accounting firms. " For the complete article, click here.
If your company needs help in complying with Sarbanes-Oxley and does not have the budget for $500/hour services, then find out more about the Sarbanes-Oxley Compliance Playbook(tm) at www.issuescentral.com and see how you can simplify your compliance project with our free 30 day evaluation.
