KPMG Fires 6 partners

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  • #1532218
    Anonymous
    Inactive

    On a different note from the usual sad stories on here.

    In the WSJ today, KPMG fires 6 partners who got advance notice of inspection of their work from a former PCAOB employee who worked at the firm, before being fired too.

    Said they had the most deficient audits of all the big 4…study up kids…as you junior accountants are the one doing the grunt work. It’s not about passing the CPA exam, but at least knowing what you don’t know and where to find it. A skill the CPA exam is now testing..

Viewing 15 replies - 1 through 15 (of 18 total)
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  • #1532262
    Mike J
    Participant

    This situation is disgusting.

    If you're familiar with Matt Taibbi and his reporting on HSBC this shouldn't surprise you however.

    It has been downright insulting that the PCAOB never seemed to ask KPMG what came to their attention while auditing HSBC. That is the standard, right? External auditors must report any fraud or illegal acts that comes to their attention. Somehow, KPMG never asked HSBC's legal counsel if they received any notices from regulatory bodies or the friggin FBI.

    However when the story broke, the SEC cited historically deficient internal controls. Nothing further came of it.

    Sorry to rant, but this pisses me off. I have pride in what I do and who I associate with. This is my intended profession. I say let's get rid of the so-called rotten apples to save the bunch. KPMG and other big four firms are somehow looked upon as the gold standard of the profession. Yet this stuff is a stain on the profession. It stains us all if we're silent about it.

    See also Arthur Andersen And whoever was Goldman's & AIG's external auditor

    It's several years late but at least it's something.

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    #1532430
    Anonymous
    Inactive

    HSBC has been a chronic lawbreaker, laundering billions in dirty money.

    I wonder why so many heads are rolling though, it should be interesting to see how this plays out

    #1532442
    Anonymous
    Inactive

    I've made several threads/comments on this site in the past regarding CPA firms, particlarly smaller firms, that are basically fraudulent or place many ethical strain on their employees. Yeah, as staff you are supposed to document various ethical dilemmas you might come across, but ultimately partners and firms will ignore it in order to keep business and earn income from these clients.

    When I made those comments about the industry, people denied it and said I have been working in poor environments. But the truth of the matter is as I've stated before, this is the nature of the industry, it's how the industry operates. It is widespread even up to the Big 4.

    I've even blew the whistle and spoke with legal counsel in the past regarding ethical dilemmas and they basically told me no action was worth pursuing because it's not a big enough case for them to make money off of it.

    If you know where and how to look, fraud and these ethical dilemmas are widespread and not hard to find. Most firms will keep their employees dumb and obedient enough though so they cannot tell the difference.

    #1532716
    Mike J
    Participant

    It makes us all look bad.

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    #1533030
    Anonymous
    Inactive

    It's not just KPMG that looks bad.

    One could say it makes the PCAOB look worse. How is a confidential audit being leaked? Obviously they have a “material weakness” in their controls as well…

    #1533625
    C / X
    Participant

    There are going to be bad apples in every bunch of “x” so that's one thing. The funny thing I find is even though the financial industry is heavily regulated it has a tendency to get away with “a lot more” *cough bank bailout* than other heavily regulated industries who will get in trouble for taking a piss and not saying it.

    There are going to be big and small firms who do shady stuff and ones who don't, and considering how much time,money, we invest in our careers, I think it's just important that accountants know that it's one hell of a good bridge to burn and get the hella outa dodge when coming across that stuff since the CPA exam really loved pounding these damn ethical requirements in our heads (…wonder why). Companies are going to do what's best for them but some of them don't realize what is actually good and what's not. There are a lot of short-sighted people in this world and they make me wonder how in the hell…Sometimes I wish people that were very high up were given a reality check and would come down to earth because they are missing some very important basic……

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    #1533946
    Anonymous
    Inactive

    @mike030882

    Goldman, AIG, and the financial crisis is the fault of the external auditor?

    #1533994

    I haven't heard anything about the person at PCAOB that leaked the engagements to be reviewed to the former PCAOB player that was not working at KPMG. Sorry, but heads need to roll there too.

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    #1533997

    sorry.. former employee.. hahaha watching the NHL Playoffs.. LET'S GO RANGERS!!!!

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    #1534039
    SaveBandit
    Participant

    Anyone who thinks B4, or anyone else, adheres to some sort of higher standard is high off his ass. The whole concept of financial statement integrity is a ruse to appease congressmen and shareholders. There are always shady people who find loopholes, or don't care about the rules. It was true before SOX, and it's true after SOX. These laws are completely reactionary in nature. There will always be loopholes for scandals, and SOX will never be able to circumvent collusion. Not every company is unethical, but there are still plenty who are. No amount of regulation will ever stop that. Nobody should be surprised by this. The almighty dollar will continue to rule.

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    If you pray enough, you can turn yourself into a cat person.

    4 for 4

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    #1534075
    Mike J
    Participant

    @cjsoccer3

    I made it clear that the external auditor should have been asked what came to their attention.

    As with the case with KPMG, did they even bother to interview HSBC's staff counsel?

    In the case of AIG/Goldman's external auditor, I'd bet they never analyzed their going concern. eg they needed to be bailed out by US taxpayers. And yet I'd bet that the auditor issued an unmodified report each year, without a mention of going concern.

    Also, CJ, maybe review what reasonable assuarance means.

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    #1534077
    Mike J
    Participant

    @cpastoolie

    I don't think shooting the messenger solves anything. All it does is distract from KPMG doing shoddy, perhaps grossly negligent work.

    The leak already happened so let's solve the problem that came to light.

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    #1534230

    But they weren't fired for shoddy negligent work. They were fired for receiving and disseminating information received from the PCAOB as to which engagements would be reviewed by the PCAOB rather than reporting it up the chain. When the fish stinks, it stinks from the head down. The person at the PCAOB that leaked information to a former colleague now working at KPMG is just as responsible as the those at KPMG. It's not just a black eye on KPMG, but public accounting in general as it gives the impression and some could argue rightfully so that the Big4 and PCAOB are in bed together whether they are or are not. So far I have not seen that person's name in print like I have the head of audit's from KPMG that was let go.

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    #1534300
    Mike J
    Participant

    This is my point about KPMG–https://youtu.be/9xZx1lf2tvs

    External auditors perform the same function as S&P, Moody's.

    And speaking of regulatory bodies–https://youtu.be/LY1Cj8jhA6c

    So, like I said, I don't criticize leaks. Let's focus on the message not punishing the messenger

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    #1534314
    IcecreamF
    Participant

    Ive noticed this website has been deleting comments that goes against jeffs narrative. I made a comment on this thread and it was deleted without notice (the comment was not inappropriate). Its been happening a ton.

    Also dont buy Ninja Products, theyre complete trash, take a look at the state of this forum, hardly any success stories from them.

    .
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