KPMG And the Independence Rules

Student: Victor Olivares*
Mentor: Benoit Boyer
Major: Accounting/Finance

Under the Principles of Professional Conduct, a CPA should be independent in fact and in appearance whenever performing an attest function.  What would a reasonable person conclude if an audit partner or a friend of the audit partner had the appearance of a financial gain?  KPMG advised the Company it resigned as Herbalife’s independent accountant solely due to the impairment of KPMG’s independence resulting from its now former partner’s alleged unlawful activities and not for any reason related to Herbalife’s financial statements, its accounting practices, the integrity of Herbalife’s management or for any other reason. SKECHERS USA, Inc, today announced that KPMG, LLP resigned as independent auditor of Skechers due to misconduct by KPMG’s lead Audit Engagement Partner on the Skechers account.

*Honors Senior