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The motion to have the firm disqualified has been made by the Massachusetts state tax department and similar departments from 13 other US states, which have questioned the objectivity of the KPMG audit.
Judge Arthur Gonzalez, a US bankruptcy judge, has retired to consider his decision, although it is not known when he will issue his verdict.
A spokesman for KPMG confirmed the case against the firm – but declined to comment further other than to say that the judge was ‘considering whether to disqualify the firm’.
Loss of the MCI audit would be a significant blow to KPMG. The most recent 10-K annual report filing by MCI, submitted to the SEC on 12 March this year, shows that KPMG earned $146.8m (£82.1m) for its audit and tax work.
Of this, $143.5m was earned from audit and audit-related activities and the remaining $3.3m from tax work.
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
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If businesses do not take cyber security seriously in their business planning regulators may do it for them, the ICAEW has warned
Dr Richard Willis provides a several thousand-year history lesson of the profession, from origin to modern-day