September 30, 2005
Ouch! - PCAOB Not Impressed with KPMG's Audits
To be fair, the PCAOB has a bit of a heavy handed reputation regarding its inspections of public audit firms, but 19 out of 76 audits have problems? 25%, that obviously is not close enough for government work!
We have heard rumors that PCAOB inspectors are not all hugs and kisses in their evaluations, but these allegations are stinging. KPMG's clients have to be worried too. The plot thickens.
An excerpt from an article, here:
Overseers Criticize KPMG Audit Quality
"Accounting Board Cites 18 Flawed Audits in First of a Series of Reports on Big Four
By Carrie JohnsonWashington Post Staff WriterFriday, September 30, 2005;
Accounting regulators criticized KPMG LLP yesterday for failing to identify significant errors uncovered in an intense, months-long inspection of the accounting firm's work.
A report by the Public Company Accounting Oversight Board,created by Congress to provide independent oversight of the accounting industry, cited numerous faults in 18 audits performed by KPMG for publicly held companies. In one case, mistakes exposed by the board led an unnamed client company to restate previously reported earnings. Board inspectors selected for review a small slice -- 76 audits -- of KPMG's nearly 1,900 publicly traded clients between June and October 2004." For the complete article, click here.
To help your company effectively comply with Sarbanes-Oxley, see www.issuescentral.com to learn more about Compliance Playbook(tm).
We have heard rumors that PCAOB inspectors are not all hugs and kisses in their evaluations, but these allegations are stinging. KPMG's clients have to be worried too. The plot thickens.
An excerpt from an article, here:
Overseers Criticize KPMG Audit Quality
"Accounting Board Cites 18 Flawed Audits in First of a Series of Reports on Big Four
By Carrie JohnsonWashington Post Staff WriterFriday, September 30, 2005;
Accounting regulators criticized KPMG LLP yesterday for failing to identify significant errors uncovered in an intense, months-long inspection of the accounting firm's work.
A report by the Public Company Accounting Oversight Board,created by Congress to provide independent oversight of the accounting industry, cited numerous faults in 18 audits performed by KPMG for publicly held companies. In one case, mistakes exposed by the board led an unnamed client company to restate previously reported earnings. Board inspectors selected for review a small slice -- 76 audits -- of KPMG's nearly 1,900 publicly traded clients between June and October 2004." For the complete article, click here.
To help your company effectively comply with Sarbanes-Oxley, see www.issuescentral.com to learn more about Compliance Playbook(tm).
