![warnings of engagements to be
inspected by the PCAOB, or were aware that others had
received such advance warnings and had
failed to properly report the situation in a timely manner,”
according to KPMG, which refused to
provide names of the other five individuals.
“This issue does not impact any of the firm’s audit opinions or
any client’s financial statements,”
KPMG said in a press release.
Contending that some of yesterday’s press reports on the ouster
“have been inaccurate,” Manuel
Goncalves, KPMG’s executive director of media relations and
corporate communications, attempted
to clarify matters in an email to CFO.
“[S]o just to be clear with you, first, KPMG discovered the
issue and our regulators — the PCAOB and the [Securities and
Exchange
Commission] — were immediately informed. From that moment
we have been and will continue to cooperate with them in
addressing
this situation,” Goncalves wrote.
“Second, outside counsel was engaged to perform an
investigation, and based on information obtained through the
investigation, the
firm took quick and decisive personnel action — separating six
individuals from the firm. They did not resign,” he added.
In late February, KPMG learned from an “internal source” that a
person who had joined the firm from the PCAOB later received
confidential information from an employee of the PCAOB and
shared that information with other people at KPMG, according
to the press](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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- 1. 10/8/2017 KPMG Replaces Audit Chair in Wake of Alleged PCAOB Leak http://ww2.cfo.com/finance-risk-management/2017/04/kpmg- replaces-audit-chair-wake-pcaob-leaks/ 1/4 Scott Marcello Finance & Risk Management KPMG Replaces Audit Chair in Wake of PCAOB Leaks An employee at the accounting oversight board leaked news of upcoming inspections to a former PCAOB employee who'd moved to the audit firm. David M. Katz April 12, 2017 | CFO.com | US - Comments: 3 Faced with the revelation that six of its auditors had improperly received advance information from an employee of the Public Company Accounting Oversight Board about up upcoming inspections of the firm, KPMG yesterday announced that it was replacing its top auditor, Scott Marcello, with Frank Casal, a 38-year veteran with the firm. Marcello, four other audit partners, and one employee were fired when the firm learned through an internal investigation that the six “either had improper advance
- 2. warnings of engagements to be inspected by the PCAOB, or were aware that others had received such advance warnings and had failed to properly report the situation in a timely manner,” according to KPMG, which refused to provide names of the other five individuals. “This issue does not impact any of the firm’s audit opinions or any client’s financial statements,” KPMG said in a press release. Contending that some of yesterday’s press reports on the ouster “have been inaccurate,” Manuel Goncalves, KPMG’s executive director of media relations and corporate communications, attempted to clarify matters in an email to CFO. “[S]o just to be clear with you, first, KPMG discovered the issue and our regulators — the PCAOB and the [Securities and Exchange Commission] — were immediately informed. From that moment we have been and will continue to cooperate with them in addressing this situation,” Goncalves wrote. “Second, outside counsel was engaged to perform an investigation, and based on information obtained through the investigation, the firm took quick and decisive personnel action — separating six individuals from the firm. They did not resign,” he added. In late February, KPMG learned from an “internal source” that a person who had joined the firm from the PCAOB later received confidential information from an employee of the PCAOB and shared that information with other people at KPMG, according to the press
- 3. release, which added that the information “potentially undermined the integrity of the regulatory process.” When the audit oversight board learned that KPMG “had come into possession of confidential PCAOB inspection selection information, the PCAOB immediately commenced an internal investigation,” according to a PCAOB spokesperson. Accounting & Tax Banking & Capital Markets Risk & Compliance Human Capital & Careers Growth Companies Strategy Technology Share 195 Share Share 28 Tweet advertisement Popular Articles 1. How AI Impacts the Tax Function 2. Companies Piling Losses onto Balance Sheets 3. Why You Should Take the “F” Out of FP&A 4. What I Learned from Being Fired 5. Deloitte Confirms Hack Breached Email System SHARE http://ww2.cfo.com/auditing/2017/04/kpmg-replaces-audit- chair-wake-pcaob-leaks/attachment/scott-marcello/#main
- 5. chair-wake-pcaob-leaks%2F http://aef.argyleforum.com/l/352971/2017-06-28/23kn https://adclick.g.doubleclick.net/pcs/click?xai=AKAOjsutDupN Rqgi9lLnUDPf8I5kjZ5lsxESN1bc22cX1BblV_vARziJha5OOT4 NxIKSy9T8OHbhZ8h3NEacSM9yQPhqgk- VJtUU1IFWT41mQcrlzNShk8H13XqswSI2n5FBGrE8Am94xHJ a3f-WD1Jwc9oNagHIA-ze56s20RqM_C9wTHIYMzp- myo3Sk9fsHVaujzM7gKHkwR- ZcHTTH0UaMXWOH_Fiyp5MUU&sig=Cg0ArKJSzMsLJxHUjv RAEAE&urlfix=1&adurl=https://adclick.g.doubleclick.net/pcs/c lick?xai=AKAOjsujbErrlc5zDx4SIv5RNug32rcaytX0FWOYenm UJPa1rcnGStyJKBQG7ejYsMb4iDKqsrpKMGsrs5rWCoyF_AM V6DDLmXmyWA6m8NzHm2MiK0LmByZs6LYtAtmVFJaS&si g=Cg0ArKJSzDtKF- 6kMhsd&urlfix=1&adurl=https://www.trustmark.com/truepartne r-market http://ww2.cfo.com/tax/2017/09/ai-impacts-tax-function/ http://ww2.cfo.com/financial-reporting-2/2017/09/companies- piling-losses-onto-balance-sheets/ http://ww2.cfo.com/business-planning/2017/09/take-f-fpa/ http://ww2.cfo.com/accounting-tax/2017/09/learned-fired/ http://ww2.cfo.com/cyber-security-technology/2017/09/deloitte- confirms-breach-email-system/ http://ww2.cfo.com/ 10/8/2017 KPMG Replaces Audit Chair in Wake of Alleged PCAOB Leak http://ww2.cfo.com/finance-risk-management/2017/04/kpmg- replaces-audit-chair-wake-pcaob-leaks/ 2/4 Powered by 04/17/17 12:33pmSaylor6 said
- 6. “The investigation identified inappropriate disclosures by an employee, and the employee is no longer with the PCAOB. Separately, the PCAOB has taken steps to maintain and reinforce the integrity of its inspection process,” according to the spokesperson, who refused to comment further. The PCAOB inspects registered public accounting firms to gauge their compliance with the Sarbanes-Oxley Act, the rules of the board and the SEC, and professional standards. In general, the PCAOB annually inspects firms that audit more than 100 issuers. In October 2016, KPMG was criticized by Sen. Elizabeth Warren (D.-Mass.) for failing to unearth information about illegal sales practices at Wells Fargo, an audit client of the firm. In 2015, questions similarly arose about the firm’s failure to uncover corruption at FIFA, the soccer governing body. Casal, KPMG’s new audit head, is a former member of the firm’s board who “has served previously as the lead audit engagement partner on some of KPMG’s largest, publicly held financial services and industrial manufacturing clients,” Lynne Doughtie, the firm’s chair and CEO, said in a separate press release issued yesterday. The firm also named Jackie Daylor national managing partner for audit quality and professional practice on Tuesday. Related KPMG Settles SEC Auditor Independence Charges
- 7. PCAOB Proposes Relying on Global Inspectors PCAOB Finds Slip-ups in E&Y Audits PCAOB Trying Di�erent Tack in Selecting Audits Explore CFO Training Aims to Unify Far-�ung Finance Sta� Subscribe to CFO Weekly eNEwsletter When Your Big Customer Wants to Pay Late Spreadsheets: Why Pivot Tables Won't Sum White Papers False Positives: The Undetected Threat to Your Revenue THE NEW RULES OF ENGAGEMENT FOR
- 8. GLOBAL BUSINESS SUCCESS How CFOs Can E�ectively Engage Procurement to Maximize EBITDA A CFO’S GUIDE TO TRANSFORMING THE FINANCIAL CLOSE 3 responses “KPMG Replaces Audit Chair in Wake of PCAOB Leaks” advertisement advertisement Popular Articles 1. How AI Impacts the Tax Function 2. Companies Piling Losses onto Balance Sheets 3. Why You Should Take the “F” Out of FP&A 4. What I Learned from Being Fired 5. Deloitte Confirms Hack Breached Email System https://contextly.com/ https://www.warren.senate.gov/files/documents/2016-10-
- 10. 6kMhsd&urlfix=1&adurl=https://www.trustmark.com/truepartne r-market http://ww2.cfo.com/tax/2017/09/ai-impacts-tax-function/ http://ww2.cfo.com/financial-reporting-2/2017/09/companies- piling-losses-onto-balance-sheets/ http://ww2.cfo.com/business-planning/2017/09/take-f-fpa/ http://ww2.cfo.com/accounting-tax/2017/09/learned-fired/ http://ww2.cfo.com/cyber-security-technology/2017/09/deloitte- confirms-breach-email-system/ http://ww2.cfo.com/ 10/8/2017 KPMG Replaces Audit Chair in Wake of Alleged PCAOB Leak http://ww2.cfo.com/finance-risk-management/2017/04/kpmg- replaces-audit-chair-wake-pcaob-leaks/ 3/4 Who is getting fired and or charged at PCAOB. Also is this why KPMG hires people from PCAOB. The issue is getting caught. Reply 04/17/17 13:31pmDavid M. Katz said We’re all waiting to find out who got fired at PCAOB, which wouldn’t say who it was last week. We might have to wait a good deal longer, I’m afraid. Reply 05/03/17 14:55pmJyu said I hope they take control of the situation before it gets to where
- 11. Arthur Anderson got with Enron. These few shady people bringing down gigantic accounting firms and corporations overnight! Reply Leave a Reply Your email address will not be published. Required fields are marked * Comment Name * Email * Website POST COMMENT advertisement advertisement Popular Articles 1. How AI Impacts the Tax Function 2. Companies Piling Losses onto Balance Sheets 3. Why You Should Take the “F” Out of FP&A
- 12. 4. What I Learned from Being Fired 5. Deloitte Confirms Hack Breached Email System http://ww2.cfo.com/finance-risk-management/2017/04/kpmg- replaces-audit-chair-wake-pcaob- leaks/?replytocom=1601432#respond http://ww2.cfo.com/finance-risk-management/2017/04/kpmg- replaces-audit-chair-wake-pcaob- leaks/?replytocom=1601447#respond http://ww2.cfo.com/finance-risk-management/2017/04/kpmg- replaces-audit-chair-wake-pcaob- leaks/?replytocom=1606328#respond http://aef.argyleforum.com/l/352971/2017-06-28/23kn https://adclick.g.doubleclick.net/pcs/click?xai=AKAOjsutDupN Rqgi9lLnUDPf8I5kjZ5lsxESN1bc22cX1BblV_vARziJha5OOT4 NxIKSy9T8OHbhZ8h3NEacSM9yQPhqgk- VJtUU1IFWT41mQcrlzNShk8H13XqswSI2n5FBGrE8Am94xHJ a3f-WD1Jwc9oNagHIA-ze56s20RqM_C9wTHIYMzp- myo3Sk9fsHVaujzM7gKHkwR- ZcHTTH0UaMXWOH_Fiyp5MUU&sig=Cg0ArKJSzMsLJxHUjv RAEAE&urlfix=1&adurl=https://adclick.g.doubleclick.net/pcs/c lick?xai=AKAOjsujbErrlc5zDx4SIv5RNug32rcaytX0FWOYenm UJPa1rcnGStyJKBQG7ejYsMb4iDKqsrpKMGsrs5rWCoyF_AM V6DDLmXmyWA6m8NzHm2MiK0LmByZs6LYtAtmVFJaS&si g=Cg0ArKJSzDtKF- 6kMhsd&urlfix=1&adurl=https://www.trustmark.com/truepartne r-market http://ww2.cfo.com/tax/2017/09/ai-impacts-tax-function/ http://ww2.cfo.com/financial-reporting-2/2017/09/companies- piling-losses-onto-balance-sheets/ http://ww2.cfo.com/business-planning/2017/09/take-f-fpa/ http://ww2.cfo.com/accounting-tax/2017/09/learned-fired/ http://ww2.cfo.com/cyber-security-technology/2017/09/deloitte- confirms-breach-email-system/
- 13. http://ww2.cfo.com/ 10/8/2017 KPMG Replaces Audit Chair in Wake of Alleged PCAOB Leak http://ww2.cfo.com/finance-risk-management/2017/04/kpmg- replaces-audit-chair-wake-pcaob-leaks/ 4/4 advertisement advertisement Popular Articles 1. How AI Impacts the Tax Function 2. Companies Piling Losses onto Balance Sheets 3. Why You Should Take the “F” Out of FP&A 4. What I Learned from Being Fired 5. Deloitte Confirms Hack Breached Email System http://aef.argyleforum.com/l/352971/2017-06-28/23kn https://adclick.g.doubleclick.net/pcs/click?xai=AKAOjsutDupN Rqgi9lLnUDPf8I5kjZ5lsxESN1bc22cX1BblV_vARziJha5OOT4 NxIKSy9T8OHbhZ8h3NEacSM9yQPhqgk- VJtUU1IFWT41mQcrlzNShk8H13XqswSI2n5FBGrE8Am94xHJ a3f-WD1Jwc9oNagHIA-ze56s20RqM_C9wTHIYMzp- myo3Sk9fsHVaujzM7gKHkwR- ZcHTTH0UaMXWOH_Fiyp5MUU&sig=Cg0ArKJSzMsLJxHUjv