WASHINGTON, Oct. 21 (UPI) -- KPMG, the fourth largest U.S. accounting firm, has been censured by the Securities and Exchange Commission for "improper professional conduct."
The action, involving audit work for Gemstar-TV Guide International, came about two years after the media company first disclosed accounting irregularities in its revenue-booking practices, the Wall Street Journal said Thursday.
In addition to the censure, the SEC suspended four of the KPMG accountants who oversaw Gemstar's audits, two of whom are no longer employed by the firm. The suspensions prohibit them from working on audits of publicly traded companies, at least temporarily.
The SEC accused KPMG and the four accountants of failing to conduct adequate audit work on Gemstar's financial statements from 1999 through 2002.
While the settlement included no fines, KPMG will be required to pay $10 million to compensate Gemstar investors. The settlement also requires KPMG to step up its training for auditors. KPMG and the four auditors neither admitted nor denied the SEC's allegations.
