U.S. accounting watchdog sanctions KPMG’s ex-vice chair of audit By Reuters

0

© Reuters.

By Chris Prentice and Susan Heavey

WASHINGTON (Reuters) – The Public Company Accounting Oversight Board (PCAOB) on Tuesday said it has sanctioned KPMG LLP’s former vice chair of audit for his role in a high-profile scandal involving leaked information from the accounting industry oversight body.

The PCAOB fined Scott Marcello $100,000, its largest ever penalty against an individual, for failing to reasonably supervise KPMG personnel who engaged in a scheme to illegally obtain and use confidential PCAOB information. The settlement marked the first time the PCAOB has imposed sanctions for “failure reasonably to supervise,” the board said in a statement.

PCAOB Chair Erica Williams said the “first of its kind” disciplinary action was a sign of the board’s commitment to sanctioning top-level personnel at the largest firms.

During Marcello’s tenure as KPMG’s vice chair of audit from July 2015 until April 2017, several of his subordinates obtained confidential lists of upcoming audits, which they used to help pass the firm PCAOB inspections. Marcello failed to take appropriate action after learning about the leak in early 2016, the board said.

Marcello could not be reached immediately for comment. KPMG fired Marcello and five employees involved in the scheme in 2017. The Justice Department later charged the five employees.

A spokesperson said the KPMG is a “stronger firm as a result of the actions taken since 2017 to strengthen our culture, our governance and our compliance program”.

KPMG, one of the Big Four accounting firms, paid a $50-million civil penalty in 2019 to the Securities and Exchange Commission to resolve the leak and other misconduct that agency’s enforcement director at the time described as “astonishing” in its breadth and seriousness.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

You might also like

Leave A Reply

Your email address will not be published.