KPMG Pledges Cooperation in Senate Probe of Bank Audits

KPMG is cooperating with a US Senate inquiry into its relationship with three failed banks and strongly defends the quality of its audits, the Big Four firm says.

Sens. Richard Blumenthal (D-Conn.) and Ron Johnson (R-Wis.) on Wednesday opened a wide-ranging inquiry into the accounting firm, requesting in a letter to KMPG CEO Paul Knopp that the firm hand over a massive trove of documents. The senators, who lead the Homeland Security and Governmental Affairs Committee’s Permanent Subcommittee on Investigations, demanded essentially all documents related to the three banks the firm audited.

KPMG confirmed late Thursday that it ...