ACC 499 Week 7 Assignment 2, Litigation, Censures and Fines
ACC 499 Week 7 Assignment 2: These violations could have been prevented if KPMG had certain internal controls in place. Prior to agreeingto loanthe employeeback toCompanyA, KPMG shouldhave evaluatedtherisk toinsure thattheir actionswould beappropriate inthescope asan independentauditor andkeep themindependent infact andappearance. With regard to Company B, if KPMG had an internal review system in place to detect conflicts prior to accepting new non-audit services they could have eliminated this violation. By accepting prohibited non-audit risks by audit clients they were no long independent in fact and appearance. Lastly with CompanyC, ifthey have employeesreport their investmentsand updatetheir investments as theychange, theycould run risksconflict checks based on the investments. Most importantly internal training, continued…….