Head of KPMG Audit Practice, Five Others Fired Amid Probe of PCAOB Leak

By:
Chris Gaetano
Published Date:
Apr 11, 2017
Quit

Scott Marcello, the head of KPMG's audit practice, and five others in the company have been fired for improperly accessing the Public Company Accounting Oversight Board's (PCAOB) confidential inspection plan for the Big Four firm, according to the Wall Street Journal. The Journal said the leaker was a disgruntled PCAOB employee. The individual who received the plan used to work at the PCAOB as well.

With the inspection plan in their possession, the KPMG employees would have knowledge of which audit engagements the PCAOB was planning to looks at, or at the very least would know that the information had been improperly shared, either of which constitutes a violation of the firm's Code of Conduct, according to Accounting Today

KPMG leadership found out about the leak in February, and immediately informed the Securities and Exchange Commission and the PCAOB before retaining outside counsel to conduct an independent investigation. 

With the departure of Marcello, who was U.S. vice chair of the firm's audit practice since July 2015, KPMG announced it would be appointing Frank Casal in his place, according to Accounting Today. 

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