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.

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