More KPMG Fraud.. Former Execs Arrested

tactikhal's picture
Rank: Neanderthal | 3,893

So apparently some accountants recruited workers on the PCAOB (Public Company Accounting Oversight Board) to join KPMG - they worked together to share inside information on PCAOB's plans to audit the firm.

Six accountants, including former partners at KPMG LLP, were arrested Monday morning and charged with conspiring to defraud securities regulators and misuse of confidential auditing information.

KPMG couldn't immediately be reached out for comment.

Thoughts? What's up with KPMG, why is there always something fishy going on at the firm? It seems their biggest scandal was before my time - but even last year, five partners were fired.

The Wall Street Journal

Comments (11)

Best Response
Jan 22, 2018

I think this is something that happens at every firm looking to skirt regulators to gain even the most marginal advantage over the competition. Think of the revolving doors that current exist between the financial industry and Washington D.C. No different, only KPMG was caught!

    • 2
Jan 22, 2018

Is this for KPMG US?

    • 1
Jan 22, 2018

They mention federal prosecution is in Manhattan but i'm not exactly sure; they did just add this:

David Middendorf, a former KPMG national managing partner, and Thomas Whittle and David Britt, both former audit partners at KPMG, were charged with conspiring to defraud the U.S. government, conspiracy to commit wire fraud and three counts of wire fraud.

Kind of vague and nowhere does it mention where they were when they were arrested. The SEC did say it happened at the national office - but I don't know if that's the HQ across the seas or not. I'm assuming it's U.S.

Edit: After a quick LinkedIn search, I can verify that they worked at the NYC office.

    • 2
Jan 22, 2018

does this mean that if i apply here now it will be easier to get a job lol

    • 1
Jan 23, 2018

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Jan 23, 2018

undelete please :)

Jan 23, 2018

Coming from Big 4 audit, I think this is needed and dumb on KPMG's part.

Audit's themselves need to be more adaptable. They don't really serve a purpose; when was the last time someone picked up financial and looked at who audited them?

Problem is they have kids fresh out of college doing work they don't understand. Only way to get anything done is just go off of last year's workpapers, essentially a "check the box" audit.

    • 2
Apr 3, 2018

.

Jan 23, 2018

I always think audits a bit of nonsense anyway.. when they come to audit my dept at a BB I can see they don't have a clue whats going on, trades going in every direction, would take months to truly understand, they sit with us for a few weeks and see they just sign off their reports regardless.

Jan 23, 2018

Hallmark of an audit.

"Here's eight hours of work, get it done in 1."

    • 1
Jan 23, 2018
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