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CAPE TOWN - KPMG, one of the so-called Big 4 accounting companies in the United States, has accepted a $6.2 million (R82m) penalty for approving statements by Miller Energy Resources in 2011 that grossly overstated values for the company's key oil and gas assets, the Securities and Exchange Commission (SEC) announced.
It said: “KPMG and engagement partner John Riordan failed to properly assess the risks associated with accepting Miller Energy as a client and did not properly staff the audit, which overlooked the over-valuation of certain oil and gas interests in Alaska."
Riordan was the Miller Energy executive who provided information to KPMG that resulted in certified financial statements.
KPMG is an internationally renown company for its professional services in auditing, tax issues and business advisory targeting consumer and retail industries, financial institutions, asset management, building and construction companies.