PCAOB offers support for beleaguered Big Four firm

The US regulator that monitors audit firms has expressed confidence in KPMG’s
public audit work, despite the firm’s fine over promoting abusive tax shelters.

In a statement released yesterday, the Public Company Accounting Oversight Board
said: ‘In addition to its tax practice, KPMG audits the financial statements of
hundreds of public companies. As the organization charged with overseeing the
audits of public companies, the PCAOB is in the midst of the second year of
annual, intensive inspections of KPMG’s auditing work.
‘The PCAOB previously performed a limited inspection of KPMG’s auditing work. As
board members have stated in the past, and based on these inspections, the board
remains confident in KPMG’s ability to perform high quality audits of public
‘The board on July 26, 2005, adopted ethics and independence rules prohibiting
registered public accounting firms from providing certain tax services, such as
those described in the agreement and related documents, to audit clients and
certain executives of audit clients.’

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