It’s been almost three years since I first broke the story of KPMG’s loaned tax staff arrangement with audit client GE. On January 24 the Securities and Exchange Commission (SEC) announced an $8.2 million settlement with KPMG over violations of auditor-independence rules. The wheels of justice turn very slowly. But the GE case was not one of the three cited as the subject of the enforcement action.
KPMG will no longer loan tax professionals to GE during busy season, according to a source close to the situation. KPMG was billing an extra $8-10 million, over and above the audit each year, for the service. Loaning, assigning, or “seconding” tax or any “bookkeeping” staff to an audit client is prohibited by the Sarbanes-Oxley Act […]
Going Concern reported yesterday that KPMG professionals have been ordered to preserve all correspondence and documentation related to the tax “loaned staff” assignment it has with long-time client GE. That means someone – the SEC or PCAOB – is investigating.
When it comes in conjunction with the annual review process and the excuse is the process of “forced ranking”. “Forced ranking” is the practice of putting some at the bottom of the performance pile every year, suddenly, even though they’ve often had no warning and even though prior performance ratings were above average in the […]
Vanities, incongruities, cruelties… The Jack & Suzy Show Interviewer: How tall are you? JACK: Five seven. SUZY: I’m five four. Interviewer: I read a study that CEOs are usually tall. SUZY: Jack actually thinks he’s very tall. JACK: I never noticed that I wasn’t a reasonable height. … Interviewer: You guys are in perhaps the […]