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KPMG, PCAOB dismiss personnel over inspection leak

Tammy Whitehouse | April 11, 2017

Heads are rolling at both KPMG and the Public Company Accounting Oversight Board over an information leak that gave KPMG auditors some advance warning around which of the firm’s audits had been selected for an upcoming inspection.

KPMG says it discovered the leak, informed the PCAOB and the Securities and Exchange Commission, and terminated six individuals, including the head of the audit practice, Scott Marcello. He has been replaced by Frank Casal. Also new at KPMG as a result of the shakeup is Jackie Daylor as national managing partner for audit quality and professional practice. That position has been held until recently by David Middendorf. The PCAOB also dismissed one unnamed employee.

KPMG says it dismissed five partners and one audit employee when it learned in late February from an internal source that someone who had recently joined the firm from a position at the PCAOB shared information with other KPMG personnel in advance of PCAOB inspections about which... To get the full story, subscribe now.