Statement on DOJ Charges and SEC Enforcement Actions Against Former KPMG and PCAOB Personnel

Today, the U.S. Department of Justice brought charges and the SEC initiated enforcement actions against several former KPMG LLP and former PCAOB personnel related to an alleged misappropriation of confidential PCAOB inspections information. The details of the allegations are available from the SEC.

The PCAOB has cooperated with and appreciates the government's actions to preserve and reinforce the integrity of the PCAOB's regulatory oversight programs that protect investors who rely on the audits of public companies.

Immediately upon learning of the alleged misconduct last year, the PCAOB Board and staff reviewed and reinforced the PCAOB's safeguards against the improper disclosure of confidential information.  Nevertheless, as indicated by Chairman Clayton today, the new PCAOB Board will conduct an ongoing review of the organization’s information technology and security controls, as well as its compliance and ethics protocols, to assess their effectiveness. 

Today’s actions should send a clear signal that the misappropriation of confidential PCAOB information or otherwise undermining the integrity of our programs will not be tolerated.