PracticeAuditKPMG Canada settles SEC charges

KPMG Canada settles SEC charges

KPMG Canada and two partners settle SEC independence charges over Southwestern Water Exploration audit

KPMG Canada and two of its partners, Gary Bentham and John Gordon, have
settled with the SEC after the US regulator charged the partners and the firm
with compromising independence.

Bentham, the audit engagement partner, and Gordon the SEC reviewing partner,
were said to have provided Southwestern Water Exploration Company, which has
since gone bust, with bookkeeping services from 1999 to 2002 and then audited
their own work – a breach of the SEC’s rules of practice. The SEC found this to
be ‘improper professional conduct’.

KPMG Canada has settled the charges, agreed to implement new auditor
independence policies and paid $73,682 (£41,095) plus interest – the equivalent
of audit and bookkeeping fees its was paid by Southwestern.

Bentham and Gordon also settled, but have been suspended from practicing as
accountants before the Commission for two years and nine months respectively.

The SEC’s order has censured the firm on discussing the matter further.

Related Articles

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

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

5d 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

6d 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
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2m Alia Shoaib, Reporter