KPMG fined $50 million for using stolen data, exam fraud - U.S. SEC
By Katanga Johnson WASHINGTON (Reuters) - KPMG LLP has agreed to pay a $50 million fine over allegations former staffers used stolen information to alter some of the accounting firm's previous audit work and cheated on training exams, the U.S.
By Katanga Johnson
WASHINGTON (Reuters) - KPMG LLP has agreed to pay a $50 million fine over allegations former staffers used stolen information to alter some of the accounting firm's previous audit work and cheated on training exams, the U.S. Securities and Exchange Commission said on Monday.
KPMG admitted to the SEC's allegations and agreed to hire an independent consultant to assess the firm's ethics and integrity controls, as well as its compliance related to abuse of the exams issued by the Public Company Accounting Oversight Board, the SEC said in a statement.
The fine was one of the largest ever imposed on an auditor by the SEC.
"The breadth and seriousness of the misconduct at issue here is, frankly, astonishing," said Steven Peikin, one of the SEC's enforcement directors. "This settlement reflects the need to severely punish this sort of wrongdoing while putting in place measures designed to prevent its recurrence."
A KPMG spokesman said on Monday the auditor has "learned important lessons through this experience," adding that the firm is stronger as a result of actions it is taking "to strengthen our culture, our governance and our compliance program."
While the U.S. Congress created the accounting board to police the work of public-company auditors, the SEC retains the authority to inspect auditors on its own.
Former PCAOB staffers have also been charged for making unauthorized disclosures related to KPMG's audits.
SEC Chairman Jay Clayton ordered his staff in January 2018 to monitor the auditor in relation to alleged misappropriation of PCAOB information.
An agency official added on Monday that the regulator will continue investigating the firm and other potential parties involved.
The case will be scheduled for a public hearing before an administrative law judge, who will prepare an initial decision regarding potential remedial actions, the agency said.
(Reporting by Katanga Johnson, Susan Heavey and Tim Ahmann; Editing by Paul Simao)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut
By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.
By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son