logo

(solved) Case Study on KPMG

   

Added on  2020-12-09

12 Pages3847 Words130 Views
Audit ReportA case study on KPMG

Executive SummaryKPMG is one of the leading firm providing the professional services of auditing. Lernout& Hauspie Speech product a Belgian company was established in 1987 and became a high-flyingsymbol of new technology in the last 1990's. The speech software company Lernout & Hauspietrick almost every of its account in he books in order to sacm its investors. The issues raisedwere related with he misleading financial statement presented by the executives ad officers ofLernout & Hauspie and there subsequent auditing by KPMG. In this regard the client speechdevelopment software company Lernout & Hauspie was also culpable for its bankruptcy. GAASis a legally approved and adopted by the American institute of certified public Accountantswhich defines the conduct of the auditors in performing and reporting of the audit engagement.The SEC requires that publicly-traded companies present their financial statements in accordancewith GAAP. 17 C.F.R. § 210.4-01(a)(1). GAAP are those principles recognized by theaccounting profession as the conventions, rules and necessary procedure. KPMG had settled thiscase afters paying of the settlement amount in form on damage compensation to the shareholdersof the company Lernout & Hauspie a amount of $115 million.

Table of ContentsINTRODUCTION...........................................................................................................................2MAIN BODY...................................................................................................................................2CONCLUSION................................................................................................................................81

INTRODUCTIONKPMG is one of the leading firm providing the professional services of auditing and isone of the Bid four auditors along with Deloitte, Ernst and Young and Pricewaterhuose Cooper.For the present report the evaluation of KPMG is carried out in context of professionalnegligence for a period after 2000. The report will explore the lawsuits filed over KPMG for itsnegligence and misrepresentations of the facts and its professional conduct. Under manycircumstances the organisation was found to under misconduct on its professional duties and atvarious points it tires to settled down the lawsuits stemming against the audit of different clientsby paying huge amounts. For the present report a lawsuit on KPMG filed by Lernout & hauspieis analysed in depth to find out the facts, evidence, ruling and decision of the case. Over al, thepresent report is all about analysis and evaluation of a lawsuit filed over KPMG in context of itsmisrepresentation and professional misconduct towards its client.MAIN BODY1.Key events and factual issues behind the case:Lernout & Hauspie Speech product a Belgian company was established in 1987 andbecame a high-flying symbol of new technology in the last 1990's. The organisation collapse dueto bankruptcy at the end of 2000 with allegations of accounting irregularities and criminal frauds.For this organisation the audit firm KPMG has responsible to carry out the auditing workto prepare and present the actual financial position of this client (Baugh and et.al., 2018). Afterthe failure of the company Lernout & Hauspie its shareholders brougth a class action lawsuitagainst KPMG in the United states District Court in Boston. In this suit KPMg was imposed withallegation of misconduct where it failed to stop Lernout & Hauspie from filing misleadingfinancial statement which lead to its ultimate bankruptcy and collapse. The speech software company Lernout & Hauspie trick almost every of its account in hebooks in order to sacm its investors. There was presence of massive, complex and cleverlyconceived fraud at Lernout & Hauspie which was conducts by the executives, officers of thecompany along with involvement of their party who were engaged in concerted efforts ofdefrauding the investors as well as the auditors. 2.The culpability and responsibilities of the parties to case, damage imposition andconsidered penalties: 882

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Audit Report on KPMG
|9
|603
|100

Audit, Assurance and Compliance Assignment - Deloitte
|13
|3917
|88