PKF gets £102K fine, what about the Big 4 failures?
May 14, 2008
AccountingWeb records that 8 YEARS after a failed audit, ICAEW fines PKF £75,000 plus £27,000 costs. Here’s what they got wrong:
The committee said that PKF had “failed to obtain sufficient knowledge” of the client’s subsidiaries, “failed to plan and perform the audit of the group to obtain reasonable assurance that the group financial statements were free from material misstatement”, and ultimately failed to amass “sufficient competent evidential matter”.
Normally I’d make a big deal out of this.Instead, I’ll leave it to Francine to pick up the beat.
I’m still wondering why ICAEW has taken NO (at least not that I can find) action over KPMG’s involvement in tax scams that led to Sir Mike Rake going on bended knee to the SEC to plead that KPMG not be given the same treatment that killed off Andersen. Instead they took the $456 million penalty.
Call me cynical but when the Big Four dominate ICAEW Council, does that mean they get a pass when things go wrong?
UPDATE: The post Francine refers to in comments closes with this:
I have three questions for the SEC. First, why were these individuals allowed to settle without admitting or denying guilt in what appears to have been an open-and-shut case? Second, why were no monetary penalties assessed? Third, why did it take six years, with only this so-called “settlement” to show for all this time and, presumably, effort?
Sounds familiar
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Dennis, This looks like more of the same “nada” from regulators. Take a look at my take on Tom Stalling’s take on what the SEC did in the AA/WorldCom case.
http://www.retheauditors.com/2.....eerie.html
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