KPMG Netherlands, PwC Germany Falter in U.S. Audit Review

KPMG LLP’s affiliate in the Netherlands struggled to meet U.S. audit standards for testing internal controls in the firm’s most recent inspection.

The Public Company Accounting Oversight Board inspects foreign affiliates every three years. The results were included in a batch of inspection reports released July 23.

Violations were found in all three of the KPMG Netherlands audits inspected in 2018. The firm didn’t properly test the internal controls for financial reporting for income taxes, as well as for financial assets and liabilities. It also didn’t sufficiently test the value of goodwill and intangible assets, the report said.

PwC LLP’s ...