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Sarbanes-Oxley News & Developments
Enron Examiner Cites Auditors, BanksHarrison Goldin says three firms should have their Enron claims subordinated to those of other creditors.
> > Enron examiner Harrison Goldin came down hard on two of the Big Four accounting firms and two major investment banks in a new report addressing transactions involving the controversial special-purpose entities at Enron Corp. Accounting firms KPMG LLP and PricewaterhouseCoopers LP, as well as Bank of America Corp. and Royal Bank of Canada, bore the brunt of criticism of Goldin. Goldin said the Bank of America and Royal Bank of Canada knew of fraud in Enron-related transactions. He added that UBS AG was not aware of fraud.
The report also found that auditor KPMG LLP committed negligence in work it did for Enron, according to a wire service account. Goldin said a fact finder could conclude that the auditor had knowledge that former Enron CFO Andrew Fastow helped set up deals for personal benefit that were unauthorized, and that KPMG was at a minimum, willfully blind to the fraudulent nature of those transactions.
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Source: CFO
Published:2003-12-09
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