KPMG AND THE U.S. DEPARTMENT OF JUSTICE: A CASE OF COERCION?

Authors

  • Daniel Edelman CPA, CFE, CFF is an Assistant Professor and Director of Accounting Programs at Texas A&M University-Commerce.

DOI:

https://doi.org/10.60154/jaepp.2008.v9n2p229

Keywords:

KPMG, deferred prosecution agreement

Abstract

On August 25, 2005 KPMG signed a deferred prosecution agreement with the US Department of Justice (DOJ). KPMG, while under investigation, audited the DOJ. The 28-page agreement allowed KPMG to continue its audit of the DOJ, pay $456 million in fines, and contained other provisions. Due to the agreement KPMG as able to remain in business thereby prevented the collapse of the firm. In addition, KPMG was allowed to complete its audit of the DOJ. However, was KPMG coerced to sign the agreement for fear of the same fate as Arthur Andersen? This paper discusses the agreement, independence, and the subsequent criminal case against former KPMG employees by the DOJ.

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Published

2023-09-22

How to Cite

Edelman, D. (2023). KPMG AND THE U.S. DEPARTMENT OF JUSTICE: A CASE OF COERCION?. Journal of Accounting, Ethics & Public Policy, JAEPP, 9(2), 229. https://doi.org/10.60154/jaepp.2008.v9n2p229

Issue

Vol. 9 No. 2 (2008): Journal of Accounting, Ethics & Public Policy, JAEPP

Section

Articles