PracticeAuditSEC forces $10m KPMG payout

SEC forces $10m KPMG payout

KPMG in the US has agreed to pay out $10million (£5.4m) after the Security and Exchanges Commission won a long-running battle over what information should be included in a company's audit.

Link:KPMG settles £64m software dispute

KPMG agreed to pay the money to the shareholders of a company called Gemstar-TV Guide International after it reached a settlement with the SEC.

Gemstar’s share value was misrepresented, claimed the US financial watchdog, because an audit failed to include the true impact of an interactive programme guide on the rest of the company’s business.

The commission has long-argued that every last penny should be accounted for when an audit is made of company accounts.

SEC claims that if even the smallest details on an audit are missed, this can impact on a share price.

However, the New York Times reports that auditors have long taken the view ‘that they did not need to challenge errors in company accounts if the amounts involved were “immaterial”‘.

KPMG has not admitted or denied SEC’s accusations.

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

5d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

2w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

2w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor