• Register
Return to: Home > News > KPMG removes 6 personnel including their head of audit over unethical behaviour

KPMG removes 6 personnel including their head of audit over unethical behaviour

Big Four firm KPMG has fired six audit personnel including four partners, one employee and the head of the audit practice in the USA, for violating the Code of Conduct, raising further questions on the cosyness of Big Four firms with regulators.

An employee formerly from the PCAOB had received confidential information following their departure, the information was on regulatory inspections and was shared with other KPMG personnel, this threatened the integrity of regulation. KPMG discovered this information in February from an internal source and reported the issue to the PCAOB and the SEC and hired an outside law firm for investigation.

The investigation found that the six KPMG employees, including five partners, had received warnings in advance of the inspection or were aware of the warnings, yet did not report the situation. The guilty personnel included Scott Marcello, vice-chair of the KPMG US audit practice.

Prem Sikka, emeritus professor of accountancy at the University of Essex, said to the Financial Times that the leak from the PCAOB was a consequence of the close links between regulators and professional services firms.

In a release KPMG was adament that this issue does not impact any of the firm’s audit opinions or any client’s financial statements. The firm named a new vice chair of audit, Frank Casal.

The PCAOB were contacted but by the time of writing had not replied. The SEC declined to comment.

Top Content

    Illicit financial flows: the Crippling of african economies and the accountants’ guilt

    At the Africa Congress of Accountants (ACOA 2017) held in Uganda in May, a panel of experts looked at the impact of illicit financial flows on African economies and the role of the accountant in combating such transactions. The panellists’ presentations were followed by a Q&A session with the audience. highlights of the Q&A are published below. Compiled by Vincent Huck

    read more

    In the land of a thousand hills: a long hike uphill – but rwanda is determined to build the profession

    Amin Miramago was appointed CEO of the Institute of Certified Public Accountants Rwanda in March this year. While attending the Africa Congress of Accountants in May he spoke to Vincent Huck about iCPAR’s strategic plan and how the institute aims to contribute to the Rwandan government’s objective to make the country the financial hub of the region.

    read more

    Cayman islands: in search of tax legitimacy

    Cayman Finance CEO Jude Scott defends the Cayman Islands’ track record in tax transparency and the quality of its financial services. Interview by Vincent Huck

    read more

    Comment: Greek Steps Forward

    By Ian Ball, chairman, CIPFA International

    read more

    The next generation’s take on a profession desperate to attract talent

    To celebrate international youth day, The Accountant asks professionals aged under 35 to share their thoughts on the profession: why they qualify as accountants, whether it was challenging and, now that they are in, how they see the profession and where it is going.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.