Senator Elizabeth Warren, Democrat of Massachusetts, harshly criticized the firm in a letter last year, saying
its failure to uncover improper activity at Wells Fargo “raises questions about the quality of your audits.”
KPMG said it immediately reported the situation with the Public Company Accounting Oversight Board to the oversight board
and the Securities and Exchange Commission and hired an outside law firm to investigate the matter.
KPMG Fires 6 Over Ethics Breach on Audit Warnings -
By CHAD BRAYAPRIL 12, 2017
The accounting firm KPMG has fired six employees, including the head of its audit practice in the United States, after it learned they
were given improper warnings ahead of planned audit inspections by its regulator, the Public Company Accounting Oversight Board.
An investigation by an outside law firm determined
that these individuals either had improper warnings of audit engagements to be inspected by the oversight board, which polices auditors in the United States, or were aware that others had received such warnings and had failed to properly report the situation in a timely manner, KPMG said.
KPMG said that an individual who had joined the firm from the Public Company Accounting Oversight Board had received
confidential information from an employee of the oversight board and shared it with others at KPMG.
“Quality and integrity are the cornerstones of all we do and that includes operating with the utmost respect and regard for the regulatory process.”
“KPMG is committed to the highest standards of professionalism, integrity
and quality, and we are dedicated to the capital markets we serve,” she added.