Editing KPMG (section)

==== 2017 ====
KPMG US terminated five partners in its audit practice, including the head of its audit practice in the US, after an investigation of advanced confidential knowledge of planned audit inspections by its [[Public Company Accounting Oversight Board]] (PCAOB).<ref>{{cite web|last1=Michaels|first1=Dave|last2=Rapoport|first2=Michael|title=KPMG partners fired over ethics breach|url=http://www.marketwatch.com/story/kpmg-partners-fired-over-ethics-breach-2017-04-11|website=MarketWatch.com|date=12 April 2017 |access-date=18 April 2017}}</ref><ref name="Dealbook KPMG fires 6"/> This followed criticism about KPMG's failure to uncover illegal sales practices at [[Wells Fargo]] or potential corruption at [[FIFA]], the governing international body of football.<ref name="Dealbook KPMG fires 6">{{cite news|last1=Bray|first1=Chad|title=KPMG Fires 6 Over Ethics Breach on Audit Warnings|url=https://www.nytimes.com/2017/04/12/business/dealbook/kpmg-public-company-accounting-oversight-board.html?_r=0|access-date=18 April 2017|work=The New York Times|date=12 April 2017}}</ref> It was reported in 2017 that KPMG had the highest number of deficiencies, among the [[Big Four accounting firms|Big Four]], cited by its regulator in the previous two years.<ref>{{cite news|last1=Rapoport|first1=Michael|title=Fired KPMG Audit Head: How Did Scott Marcello Fall From Grace?|work=The Wall Street Journal}}</ref> This includes two annual inspections that were compromised as a result of advanced access to inspection information. In March 2019, David Middendorf and Jeffrey Wada, co-defendants in the scandal, were convicted.<ref>{{Cite news|url=https://www.wsj.com/articles/kpmg-ex-partner-convicted-in-steal-the-exam-scandal-11552340232|title=KPMG Ex-Partner Convicted In 'Steal the Exam' Scandal|last=Rapoport|first=Michael|date=2019-03-11|work=[[The Wall Street Journal]]|access-date=2019-03-31|language=en-US|issn=0099-9660}}</ref>

The UK accounting regulator, Financial Regulation Council (FRC), has opened an investigation into KPMG's audit of the financial statements of British aerospace company, [[Rolls-Royce plc]] for the year ended December 2010.<ref>{{Cite news |last=Thompson |first=Jennifer |date=May 4, 2017 |title=Accounting watchdog to investigate KPMG over Rolls-Royce audits |work=The Financial Times |url=https://www.ft.com/content/bacca773-1c6f-3714-848a-055d4f286947 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/bacca773-1c6f-3714-848a-055d4f286947 |archive-date=10 December 2022 |url-access=subscription |url-status=live |access-date=May 22, 2022}}</ref>

In August, KPMG US paid a $6.2 million fine to the [[US Securities and Exchange Commission]] for inadequacies in its audit of the financial statements of oil and gas company, Miller Energy Resources.<ref>{{cite news|url=https://www.reuters.com/article/kpmg-usa-idUSEMN2I780N|title=KPMG to pay more than $6.2 mln to settle U.S. charges -SEC|work=Reuters|date=15 August 2017|access-date=15 August 2017}}</ref> It also found KPMG guilty of a long list of violations with regard to its audits, including "lack of competence" and "highly unreasonable conduct."<ref>{{cite web|url=https://www.sec.gov/litigation/admin/2017/34-81396.pdf|date=15 August 2017|publisher=SEC|title=KPMG LLP and John Riordan, CPA|access-date=11 May 2023}}</ref>

In November, 91 partners of KPMG Hong Kong faced contempt proceedings in [[Hong Kong High Court]], as [[China Medical Technologies]] (CMED) liquidators investigating a $400 million fraud took action against KPMG with regard to its refusal to honor a February 2016 court order to produce Chinese working papers, correspondence, and records to the liquidators.<ref name=II>Costello, Eugene (20 December 2017). [http://www.internationalinvestment.net/regions/asia/several-kpmg-partners-facing-hong-kong-contempt-proceedings/ "KPMG partners facing Hong Kong contempt proceedings,"] {{Webarchive|url=https://web.archive.org/web/20180124072114/http://www.internationalinvestment.net/regions/asia/several-kpmg-partners-facing-hong-kong-contempt-proceedings/ |date=24 January 2018 }} ''International Investment''.</ref><ref name=autogenerated6>Miller, Matthew (20 December 2017). [https://ca.reuters.com/article/businessNews/idCAKBN1EE0HI-OCABS "Exclusive: KPMG partners face court contempt over China audit,"] {{Webarchive|url=https://web.archive.org/web/20180122001015/https://ca.reuters.com/article/businessNews/idCAKBN1EE0HI-OCABS |date=22 January 2018 }} Reuters.</ref><ref>[http://www.scmp.com/business/investor-relations/article/2125119/kpmg-partners-face-court-contempt-proceedings-hong-kong "KPMG partners face court contempt proceedings in Hong Kong over China audit; The accounting firm has refused to hand over audit papers relating to China Medical Technologies despite a 2016 court order,"<!-- Bot generated title -->] {{Webarchive|url=https://web.archive.org/web/20180122074930/http://www.scmp.com/business/investor-relations/article/2125119/kpmg-partners-face-court-contempt-proceedings-hong-kong |date=22 January 2018 }} ''South China Morning Post'', 20 December 2017.</ref><ref>[https://www.reuters.com/article/china-audit-timeline/timeline-u-s-hk-regulators-struggle-to-get-china-audit-papers-idUSKBN1EE0HT "Timeline: U.S., HK regulators struggle to get China audit papers,"] Reuters, 20 December 2017.</ref><ref>[http://www.thestandard.com.hk/section-news.php?id=190982&sid=2 "Contempt hit looms for KPMG,"] {{Webarchive|url=https://web.archive.org/web/20180123131651/http://www.thestandard.com.hk/section-news.php?id=190982&sid=2 |date=23 January 2018 }} ''The Standard'', 21 December 2017.</ref> The liquidators are asking that 91 defendants be held in [[contempt of court]], which could result in criminal penalties, or weekly fines.<ref name=II/>  KPMG had issued written audit reports for CMED from 2003 to 2008, and was replaced by [[PwC]] Zhong Tian in August 2009.<ref name=autogenerated6 /> "Perhaps locking up 91 KPMG partners over Christmas may spur the firms to find a solution to this problem", said Professor Paul Gillis of [[Peking University]]'s [[Guanghua School of Management]].<ref name=II/>