After agreeing to pay some $195 million in a settlement to roughly 280 investors in its tax shelters, Big Four firm KPMG is under fire again, this time from a critical inspection report from the Public Company Accounting Oversight Board, which identified a number of deficiencies in some 18 of 76 audits that it examined. Although the identities of KPMG audit clients in the 29-page report remained anonymous, the oversight board revealed that deficiencies resulted in one client having to restate, while PCAOB auditors uncovered problems in other audits with leases, worker's compensation accruals, and lack of documentation to support an audit opinion.
In a statement, KPMG chairman Timothy Flynn said, "KPMG is committed to the goal of continuous improvement in audit quality. We appreciate the constructive dialogue and consider it an important element in the process of improving our system of quality controls."
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