The international accounting firm KPMG in Bermuda has been sanctioned by the Public Company Accounting Oversight Board, also known as the PCAOB. A fine of £250,000, for breaches of the company's professional standards quality control rules, was levied. Additionally, a KPMG Managing Partner, Damion Henderson, was personally fined £10,000, and his position in quality control was downgraded for a period of two years. Henderson was in charge of the Ethics & Independence department.
Reportedly, internal affidavits, which were confirmation of individual members' independence, were"misplaced" or lost, and employees were requested to recreate and backdate the documents. One employee allegedly refused to participate in this scheme. Henderson then signed off on the deception, and he failed to disclose the backdating to regulators during an audit.
Readers who require the complete text of the PCAOB Enforcement Decision may access it here.