06-05-2003, 03:48 AM
Hi Fellows, read the following news and enjoy the 3rd Act of play written by "Big Five". I must say KPMG masters are quite cleverer than others.
"June 04, 2003 - U.S. District Judge Stewart Dalzell has approved a $125 million settlement by KPMG to settle allegations that the Big Four firm's audits of the Rite Aid corporation misled investors.
The settlement was agreed to in March 2003, but was delayed because a shareholder in the suit argued that legal fees were too high - as much as $2,500 per hour. The law firms that filed the class action case will receive over $31 million for their work on the case."
(I can't understand why people agree to pay penalties if they havn't don anything fishy or wrong??)
With every day passing, it's becoming more and more clear that we need a "New Professional & Governance Order" for economic and financial sector if we wish to LIVE....
Read... what KPMG said
"KPMG has argued that it is difficult for any auditor to uncover discrepancies in a company's financial statements if its top executives are intentionally trying to manipulate the books. The firm has denied any wrongdoing but indicated that it settled the case "for practical business reasons."
(I haven't read such stupid argument in my whole professional life... If anybody else have, please let me know. Anyhow, if we accept above argument to be just and reasonable then why the hell after all we need auditor? Why shouldn't there be a "Self Assessment Scheme for Audit Reports" too????)
In my opinion this stupid argument alone was a sufficient reason to penalise KPMG.... Any opinion you folks???
Edited by - TheOne on Jun 04 2003 115259 PM
"June 04, 2003 - U.S. District Judge Stewart Dalzell has approved a $125 million settlement by KPMG to settle allegations that the Big Four firm's audits of the Rite Aid corporation misled investors.
The settlement was agreed to in March 2003, but was delayed because a shareholder in the suit argued that legal fees were too high - as much as $2,500 per hour. The law firms that filed the class action case will receive over $31 million for their work on the case."
(I can't understand why people agree to pay penalties if they havn't don anything fishy or wrong??)
With every day passing, it's becoming more and more clear that we need a "New Professional & Governance Order" for economic and financial sector if we wish to LIVE....
Read... what KPMG said
"KPMG has argued that it is difficult for any auditor to uncover discrepancies in a company's financial statements if its top executives are intentionally trying to manipulate the books. The firm has denied any wrongdoing but indicated that it settled the case "for practical business reasons."
(I haven't read such stupid argument in my whole professional life... If anybody else have, please let me know. Anyhow, if we accept above argument to be just and reasonable then why the hell after all we need auditor? Why shouldn't there be a "Self Assessment Scheme for Audit Reports" too????)
In my opinion this stupid argument alone was a sufficient reason to penalise KPMG.... Any opinion you folks???
Edited by - TheOne on Jun 04 2003 115259 PM
