US SEC sanctions KPMG, Deloitte for poor audit

Financial Reporting Council is investigating KPMG
Financial Reporting Council is investigating KPMG
US Securities & Exchange Commission has sanctioned KPMG and Deloitte

The top United States securities regulator on Tuesday charged foreign affiliates of three major accounting firms – KPMG, Deloitte & Touche and BDO – for conducting audits without proper oversight from the Public Company Accounting Oversight Board.

The Securities and Exchange Commission said that the firms agreed to settle the charges by paying penalties and disgorging profits from the audits.

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None of the affiliates, in Canada, South Africa and Zimbabwe, admitted or denied the findings that included failing to register with the PCAOB and relying on unregistered auditors to complete the work.