SEC fines KPMG $50 million for illegal use of regulatory data and cheating on internal exams – MarketWatch

Just to be clear: The KPMG employees cheated on the exams required to make sure that they were up to date on vital matters for professional competence. And the consequence is a fine and an order that they have to evaluate themselves to find out who cheated and bring in an outside consultant to look at their ethics program?

The Securities and Exchange Commission settled charges with KPMG LLP for altering past audit work after receiving stolen information about inspections of the firm that would be conducted by its regulator, the Public Company Accounting Oversight Board or PCAOB. The SEC’s order also finds that numerous KPMG audit professionals cheated on internal training exams by improperly sharing answers and manipulating test results….The SEC’s order also finds that KPMG audit professionals, including lead audit engagement partners sent exam answers related to mandatory continuing professional education, ethics and integrity, and training mandated by a prior SEC order finding audit failures to other partners, and also solicited answers from and sent answers to their subordinates to help them also attain passing scores. In addition to paying a $50 million penalty, KPMG is required to evaluate its quality controls relating to ethics and integrity, identify audit professionals that violated ethics and integrity requirements in connection with training examinations within the past three years, and comply with a cease-and-desist order. The SEC’s order requires KPMG to retain an independent consultant to review and assess the firm’s ethics and integrity controls and its investigation.

Source: SEC fines KPMG $50 million for illegal use of regulatory data and cheating on internal exams – MarketWatch

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