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15 Jan 2002
The Securities & Exchange Commission found the Big Five firm had been a substantial investor in a fund which it also audited, and has demanded reforms at the firm.
The SEC ruled the conflict of interest violated rules designed to maintain the integrity and independence of audits, and consequently the financial information upon which investors rely upon.
KPMG had invested heavily in Short-Term Investments Trust, an investment fund run by AIM Funds, one of the US's ten largest mutual fund groups.
But STIT was also audited by the firm.
KPMG said the $25m investment had been carried out by a third party and pulled out of the fund in December 2000 after AIM had told the firm of the investment.KPMG at the same time ended its relationship with AIM, which had been an audit client since 1976.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
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