PracticeAccounting FirmsKPMG faces possible action over Xerox

KPMG faces possible action over Xerox

Reports coming in from the US suggest the Securities & Exchange Commission is considering taking action against the firm over its work at Xerox.

Link: Xerox faces fresh accounts probe

According to the FT and the New York Times the SEC may file charges against the firm, three current partners and one former partner over its work as auditor for Xerox from 1997 to 2001.

The SEC settled a complaint against Xerox in April, when the company said it would pay a $10m fine and restate its financial results as far back as 1997.

Xerox later reported that the total amount of the restatement was $6.4bn, lowering revenues and profits in 1997, 1998 and 1999, but raising them in 2000 and 2001.

The firm, which has consistently denied any wrongdoing, said that if charges were filed against it then the SEC would have reached the wrong decision

‘Today’s charged regulatory environment has resulted in inappropriate actions being taken,’ KPMG’s chief executive, Eugene D. O’Kelly, said. ‘The result is a great injustice to KPMG and the four partners involved.’

KPMG were fired as auditors of Xerox in 2001 and replaced by PricewaterhouseCoopers.

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