One of the worst ethics breaches in the modern era of auditing ended with a fizzle recently as the last criminal conviction tied to a scheme to falsely inflate KPMG’s inspections results was tossed out.
The federal criminal case may have crumbled but that doesn’t negate the legacy of the inspections cheating scheme that tarnished the reputation of one of the largest firms in the US and undermined a process that is meant to protect investors.
KPMG paid a $50 million penalty. CPAs lost their licenses and livelihoods. Reforms were adopted. And the lessons for a profession that bills itself ...