The US audit oversight body has found KPMG had 14 audit deficiencies during
its 2006 inspection of the firm.
According to the Public Company Accounting Oversight Body, the faults – which
occurred at seven of the firm’s clients – included failure to identify
accounting errors and material weaknesses in internal controls over financial
The firm responded to the findings by performing additional procedures on
some of its 2005 audits.
In a letter of response to the PCAOB on 12 July, KPMG said it had made
changes to financial reports which were erroneous.
The firm also pointed out to the PCAOB that nothing had been found that
required financial restatements.