What happened was that they were given an improper heads-up ahead of Public Company Accounting Oversight Board PCAOB inspection.
What Happened Between KPMG And The PCAOB?
There was an employee who just joined big 4 accounting firm kpmg from the PCAOB. This employee received confidential information that one of KPMG’s audits would be receiving a PCAOB inspection. He shared this information with other fellow employees at KPMG.
KPMG learned this information from a whistle-blower from within the firm. They said that they learned of this information in late February of 2017. Upon learning of this information KPMG immediately reported this information to both the SEC and PCAOB.
KPMG then launched an investigation that was headed by a law firm. Reportedly these individuals knew of this illegal insider info and failed to report it through the appropriate channels. This was contrary to KPMG’s code of ethics, so they fired these employees.
Scott Marcello was the partner that led the US Audit Practice for KPMG.
Who Is Taking Over KPMG’s Audit Leadership Roles?
Frank Casal will be taking over for Scott Marcello as the lead audit partner in the US. His title is Vice Chair of the audit practice for the firm.
He has been with KPMG for 38 years. He was formerly on the US board of directors for KPMG. Frank has been on KPMG’s largest clients like General Electric (GE).
Jackie Daylor has been named as the partner in charge of Audit Quality and Professional Practice.
Visit https://big4accountingfirms.com/the-blog/kpmg-fires-6-employees-pcaob-inspection/ to learn more information.