H&R Block (HRB) said Monday that it has decide to replace KPMG as its auditor after a court appointed monitor of KPMG, Richard Breeden, was elected to Block’s board.
Breeden, the former head of the U.S. Securities and Exchange Commission, serves as the monitor of KPMG under its deferred prosecution agreement with the Department of Justice. Edward Shaw, also newly elected to Block’s board, is engaged in monitoring KPMG as well.
“The audit committee concluded that it was necessary to replace KPMG as the company’s independent auditor so that the new directors would be able to participate fully on the board,” Block said in a press release.
H&R Block said it has begun looking for a new auditor.