A tipster has provided us with what passes for Valentine’s Day cards at KPMG: notices that their spouses will be receiving postcards reminding them that independence matters to them, too.
To non-KPMGers reading this, KCIS stands for KPMG Independence Compliance System.
The postcards KPMG will be sending out to spouses suggest partners (that’s partners as in romantic ones) should schedule an “independence date night” to discuss their investments by candlelight. You thought we were being hyperbolic with that headline but no, that’s literally what it says.
Obvious question here, did a situation or multiple situations of potentially compromised independence prompt this or are they just crossing their Vs and dotting their Ds? In KPMG’s most recent PCAOB inspection report covering 2022 audits, the Part I.C. section added in 2023 to call out independence violations did not specifically mention anyone’s wife or husband holding massive amounts of Adobe or Home Depot stock or anything.
The firm reported six instances of potential non-compliance with Rule 2-01(c)(1) of Regulation SX regarding financial relationships, all of which occurred at the firm or involved its personnel. Of these instances, four related to investments in audit clients and two related to other financial relationships with audit clients. All four of the investments in audit clients related to a member of an engagement team.
LOL at that last part. Way to go, sir or ma’am.
KPMG is expecting a 20 percent deficiency rate in its upcoming PCAOB inspection, its lowest fuck up score since 2009. We’ll be sure to check I.C. for any independence issues of note.
An early Happy Valentine’s Day to you all!
We used to do our independence certs around July 4th with a cheesy “declare your independence” patriotic theme. Not quite this cheesy, but nothing wrong with having little fun with it.
Yeah, agree. We’re gently making fun of it because it’s corny but it’s cute.