KPMG ‘Gamed the System,’ Jury Told in Accounting Oversight Trial

It’s a case that prosecutors say will show how a major U.S. accounting firm corrupted its chief government regulator and cheated a system intended to make sure financial reports were accurate.

A former employee of the audit overseer, the Public Company Accounting Oversight Board, and an ex- KPMG LLP partner went on trial in New York Feb. 12, accused of colluding to improve the accounting firm’s audit results after it performed badly on earlier inspections.

Jeffrey Wada, of Tustin, California, who worked at the PCAOB from 2004 to 2017, allegedly leaked confidential information in an attempt to win favors and ...