PCAOB Faults Flaws in KPMG’s Audits

We’re just spinning and swirling…

See my comment on this article here.

The auditor should have done more work to support its opinions at 10 companies, the board’s inspection report says.
Sarah Johnson, CFO.com | US August 18, 2008

KPMG failed to do the proper evaluations and testing procedures to back up its assessments of 10 clients, according to the most recent inspection report of the Big Four firm done by the Public Company Accounting Oversight Board.

The PCAOB, which inspects the largest of the auditors annually, cited instances where the firm should have performed additional tests to confirm its clients’ valuations and assertions, as well as to notice instances where a client had strayed from GAAP. For the report released late last week, the board inspected 24 of KPMG’s 90 practice offices between April 2007 and January 2008…