The Securities and Exchange Commission has announced it will charge two KPMG auditors for failing to act on a number of red flags that could have caught an estimated $30 billion accounting fraud sooner.
The auditors worked for international food retailer Royal Ahold NV. The company's U.S. Foodservice unit distributes food to military bases, civil governments, restaurants and caterers. The company allegedly inflated its earnings by improperly booking revenue from joint ventures. In October 2004, Ahold reached an accord with the SEC and avoided paying any fines, though it did pay $1.1 billion to settle a shareholder lawsuit in November.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access