KPMG Pledges Cooperation in Senate Probe of Bank Audits
May 5, 2023
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 had received the letter and said it would cooperate with the inquiry.
“As always, the firm will cooperate with any governmental inquiry, including any request for information regarding the relevant auditing standards,” a KPMG spokesperson said in a statement. “The firm continues to stand by its audits, which were conducted in accordance with those professional standards.”
KPMG has come under a critical glare in the wake of the failures of Silicon Valley Bank, Signature Bank and First Republic Bank—all three of which it had audited without turning up any red flags.
The senators said in their letter that they aim to explore the non-auditing relationship between the firm and the banks and requested documents relating to its non-audit advisory work. They asked that the materials be handed over as soon as available.