News: U.S. SEC suspends former KPMG auditors for improper professional conduct.
WASHINGTON (Reuters) – The US Securities and Exchange Commission on Tuesday suspended two former KPMG auditors for allegedly investigating a now-defunct, non-profit college that overvalued its assets have not performed properly.
The SEC has charged Christopher Stanley and Jennifer Stewart with inappropriate professional conduct, the agency said in a statement. The SEC alleged the former KPMG employees published an audit report of the College of New Rochelle’s 2015 annual financial statements with open issues and unanswered questions.
Without admitting or denying the results, Stanley and Stewart agreed that suspensions may not appear or practice in front of the SEC as accountants, with the right to apply for reinstatement after three and one year, respectively, the SEC said.
The lawyer for both did not immediately respond to requests for comment.
KPMG and other companies have reviewed the quality of their ratings over the past few years. In 2019, KPMG paid a hefty fine imposed by the SEC over a fraud scandal, and three former KPMG auditors settled SEC-related charges last year without admitting or denying the allegations.
KPMG did not immediately respond to a request for comment, but underlined efforts to improve its governance and compliance program.
Reporting by Chris Prentice in Washington; Adaptation by Matthew Lewis
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