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Big bank auditor KPMG was tipped off before regulatory inspections

KPMG employees would receive bonuses if their engagements received no comments from inspectors, court filings show

Big bank auditor KPMG was tipped off before regulatory inspections
Photo: Getty Images

The auditor of some of the world’s largest banks — including Citigroup, Credit Suisse and Deutsche Bank — was tipped off before a regulator inspected them.

It has been previously reported that KPMG executives were able to extract from the regulator, the Public Company Accounting Oversight Board, confidential information ahead of inspections, and use that information to correct their work and at least in one instance, withdraw an opinion.

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