June 17, 2019

Audit and accounting firm KPMG LLP will pay a $50 million SEC penalty to resolve charges that the firm revised its audit workpapers in an effort to improve KPMG’s performance in PCAOB inspections planned for the audits in question after wrongfuly obtaining PCAOB lists of inspection targets.  The SEC also found that numerous KPMG audit professionals cheated on internal training exams.  In addition to the penalty, KPMG agreed to undertake specified compliance measures, including the retention of an independent consultant.  Former KPMG officials face individual criminal charges.  SEC

Tagged in: Accounting Fraud, Financial and Investment Fraud, Securities Fraud,