Financial Accounting News

Former Audit Regulator Gets Nine Months in KPMG Fraud Scandal

Oct. 11, 2019, 5:15 PM

A former employee of the U.S. regulator that oversees financial audits of public companies was ordered to spend nine months behind bars for giving advance notice of surprise inspections to accounting firm KPMG LLP.

Jeffrey Wada, 44, a former inspections leader at the Public Company Accounting Oversight Board, was convicted on fraud charges in March along with David Middendorf, KPMG’s national managing partner for audit quality and professional practice.

Prosecutors said Wada and other former PCAOB employees helped funnel secret details about inspection plans to leaders at the accounting firm, who used the information to improve their results. U.S. District...

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