Japanese regulators slightly criticize Olympus auditors then say the corrective action plan they require wouldn’t have found the fraud anyway
Reuters reports that the Japanese regulator, Financial Service Agency, criticized KPMG and Ernst & Young for their audits of Olympus. Then they partially retracted their criticism.
The Reuters article, Japan regulator raps KPMG, Ernst & Young for Olympus work, says the two firms
…lacked operational management systems to ensure proper auditing that would spot and flag dubious transactions.
The regulators didn’t find any “intentional acts of grave negligence” according to the article.
I guess that means they should have had the foresight to develop some unidentified management system that would have identified the fraud.
The two firms have to develop a business improvement plan and report on their progress every six months.
An official then essentially retracted the criticism. Check out this comment:
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