KPMG pays the penalty for Xerox work
KMPG settles over its audit of Xerox.
KPMG in the US has agreed to pay a total of $22.5m (£11.7m) to settle a federal investigation into its auditing work for Xerox.
The investigation, which was brought up by the SEC, found that KPMG ‘aided and abetted Xerox’s violations of the anti-fraud, reporting, recordkeeping and internal controls provisions of the federal securities laws’.
KPMG consented to perform remedial undertakings designed to prevent future violations of the securities laws that arose from circumstances that were present in this case.
‘This settlement results in significant relief that will serve to deter and prevent future auditor misconduct, and the significant monetary relief will provide a source of future funds which can be distributed to injured Xerox investors,’ said Stephen M Cutler, the SEC’s director of the division of enforcement.