January 5, 2007
KPMG Off the Hook
KPMG entered into a deferred prosecution agreement with the government, offering cooperation and money as a part of the agreement. Carrie Johnson of the Washington Post reports that the government has now dismissed the criminal charge it filed (conspiracy) finding that KPMG had met the terms of the agreement. The terms of the agreement included a 456 million dollar payment to the government. One issue now raised is whether the dismissal presents new arguments in the Stein case, a case that considered whether the Thompson Memo provisions and application improperly deprived some defendants of their attorney fees. But there is a more fascinating part of the deferred prosecution agreement. It is found near the end when the government and KPMG are agreeing that KPMG can continue to audit government books. It states in part:
"KPMG has been involved in an engagement to audit the Department of Justice's financial statements. The Department of Justice's debarring official has determined that KPMG is currently a responsible contractor."
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I reported on this amazing fact first on November 28, 2006 in my blog, Re: The Auditors.
See the whole post here, http://retheauditors.blogspot.com/2006/11/too-few-to-fail-or-something-more.html.
Posted by: Francine McKenna | Feb 25, 2007 11:41:05 AM