PracticeAccounting FirmsKPMG hits out at PwC over Xerox

KPMG hits out at PwC over Xerox

KPMG has hit out at rival PricewaterhouseCoopers after becoming the latest firm to become embroiled in an accountancy scandal, after its audit client Xerox was accused of overstating its revenues.

The Big Five firm has released a statement stating it stands by its company’s financial statements for 2000 and the restated statements for 1997, 1998 and 1999, despite the photocopying giant including income from leasing up front rather than spread over a number of years.

Xerox sacked the firm in October last year and replaced it with PwC.

KPMG, said in a statement: ‘KPMG has not yet seen Xerox Corporation’s 10-K filing with the Securities and Exchange Commission, although we have seen Xerox acknowledge that there will be a reallocation of revenues in a further restatement. Our position remains consistent in the Xerox matter.

‘While this is an astonishing about-face on the part of Xerox’s management and PricewaterhouseCoopers, we are not aware of any facts that would change our previous conclusions. We continue to stand behind our audit work and our engagement teams.

PwC would not comment.

The scandal follows hot on the heels of the Enron and Worldcom fiascos; both audited by splintering firm Andersen.

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