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Reply #37: SEC settles with ex-KPMG auditors - engaged in "highly unreasonable" condu [View All]

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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Mar-31-06 07:29 AM
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37. SEC settles with ex-KPMG auditors - engaged in "highly unreasonable" condu
Tenet auditors engaged in "highly unreasonable" conduct

http://www.marketwatch.com/News/Story/Story.aspx?guid=%...

SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission has settled with three former KPMG LLP auditors for their "highly unreasonable conduct" regarding Tenet Healthcare Corp.'s fiscal 2002 financial statements, officials said Thursday.

As part of the settlement, the auditors can't appear or practice before the commission as accountants, though two may apply for reinstatement in several years.

The commission settled with Clete Madden, the KPMG partner in charge of the Tenet audit; David Huffman, the KPMG senior manager on the Tenet audit, and Aron Carr, a former KPMG manager.

"By failing to perform a proper audit and then altering documents, thereby concealing their audit failures, the KPMG auditors were derelict in their most basic gatekeeping functions," said Linda Chatman Thomsen, director of the SEC's enforcement division, in a statement.

<snip>

Then, in November 2002, the Tenet audit team, led by Madden and Huffman, began altering the audit's working papers -- spending than 500 hours and changing more than 350 papers to create the false impression that the audit was complete when the report was issued, according to the SEC.

...more...
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