PCAOB Imposes $250,000 Penalty On KPMG
The Public Company Accounting Oversight Board has imposed a $250,000 penalty on KPMG Bermuda, saying “KPMG Bermuda’s system of quality control failed to provide reasonable assurance that Firm personnel would comply with applicable professional standards and the firm’s standards of quality, including with respect to performing all professional responsibilities with integrity.”
KPMG statement
A KPMG spokesperson said, “KPMG in Bermuda today acknowledged the issuance of a Settlement Order [Order] by the Public Company Accounting Oversight Board [PCAOB], its regulator for audits of US public companies.
“The Order relates to the loss of certain independence confirmations in 2014, and the re-execution of these confirmations in 2014 and 2015. Since then the firm has introduced an electronic tracking system to manage the timely receipt and retention of independence confirmations. These changes mitigate the risk that these confirmations could be misplaced in the future.
“The firm is satisfied that there was no breach of the auditor independence rules by the firm or any employee as a result of this matter. KPMG in Bermuda looks forward to a continued positive working relationship with the PCAOB.”
PCAOB
The PCAOB said [PDF], “By this Order, the Public Company Accounting Oversight Board [PCAOB] is: [1] censuring KPMG Audit Limited ["KPMG Bermuda" or the "Firm"]; [2] imposing a civil money penalty in the amount of US $250,000 upon the Firm; [3] requiring KPMG Bermuda to undertake and certify the completion of certain improvements to the Firm’s system of quality control; [4] censuring Damion J. Henderson, CA [collectively, with KPMG Bermuda, the "Respondents"]; [5] imposing a civil money penalty in the amount of US $10,000 upon Henderson; and [6] limiting Henderson’s role in the Firm’s system of quality control for a period of two [2] years from the date of this Order.”
