PracticeAuditKPMG joins Lord Black in firing line

KPMG joins Lord Black in firing line

KPMG in North America has come under fire for 'undermining' the compilation of the report that accused Lord Black of treating Hollinger International as a 'corporate kleptocracy'.

The report, which comes from a special committee of Hollinger International’s board of directors and was compiled by Richard Breeden, the former SEC chairman, said that KPMG ‘resisted’ requests for information.

When it finally gave access to its work papers, just weeks before the report, it still refused permission for the copying of files at its Canadian offices.

The firm is itself criticised in the report, which found that ‘the late access somewhat undermined the Special Committee’s ability to expeditiously complete its analysis.’

It is also alleged that KPMG, which still audits Hollinger’s books, neglected to report concerns that the amount and nature of management fees might violate fiduciary standards, or to raise concerns over proposed non-compete agreements.

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