KPMG Criticizes Court's Enron Report

HOUSTON -- KPMG said a critical report by an independent examiner in Enron Corp.'s bankruptcy accusing the firm of being willfully blind to shady transactions was "riddled with flagrant legal and factual errors," The Associated Press reported Friday

Harrison Goldin, the examiner for Enron's former wholesale trading unit, concluded in a report filed earlier this month that Enron had potential claims against the accounting firm for negligence. Employees of KPMG audited the LJM partnerships once run by former Enron finance chief Andrew Fastow.

The accounting firm's lawyers argued Thursday in a filing with Enron's bankruptcy court that the "report is riddled with flagrant legal and factual errors, mischaracterizations and omissions.

"These flaws come at the expense of a fair record and to the detriment of KPMG, as well as the parties that might rely on this flawed report," they argued.

-- NYSSCPA.org News Staff

Posted on 12/22/03