In a highly publicized case with significant ramifications for accounting firms that seek to provide more than just auditing services to their clients, a Securities and Exchange Commission administrative law judge found Jan. 21 that KMPG Peat Marwick LLP did not engage in “improper professional conduct” by auditing a company that was a management client of an affiliate (In re KPMG Peat Marwick, SEC, Admin. Proc. File No. 3-9500, 1/21/00.)
Specifically, the ALJ said KPMG did not violate Rule 102(e) of SEC Regulation S-X when it performed an audit for Porta Systems Corp., a company that was also receiving management services from a KPMG affiliate, KPMG BayMark LLC.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
