KPMG and the Wells Fargo board of directors knew the company had fake accounts on the books, but KPMG didn’t flag it because the firm didn’t regard it as relevant to the financial statement audit, according to a letter from U.S. Senators to audit regulators asking how that could be possible.
Sen. Elizabeth Warren and Sen. Edward Markey, both Democrats from Massachusetts, have asked the Public Company Accounting Oversight Board to look into “three pieces of troubling new information” they learned in doing their own inquiry to the Wells Fargo scandal. They say:
