KPMG to pay record 10 million dollars over 'audit failures'

0 Comments | AFP, October, 2004

WASHINGTON (AFP) — The US Securities and Exchange Commission said that accounting firm KPMG had agreed to pay a record 10 million dollars to settle its "improper" audits of Gemstar-TV Guide International.

The 10-million-dollar sanction represents the biggest payment ever made by an accounting firm in an SEC investigation. The regulator also sanctioned the actions of two former KPMG partners, a current partner and a senior manager for engaging in "improper conduct."

"Our action today holds KPMG as a firm accountable for the audit failures of its partners," said Stephen Cutler, the SEC's director of enforcement, in a statement.

"The sanctions in this case should reinforce the message that accounting firms must assume responsibility for ensuring that individual...