"The trustee overseeing the bankruptcy of subprime lender [NCF] filed suit against its auditor, KPMG LLP, claiming that 'reckless and grossly negligent audits' helped accelerate the firm's collapse two years ago. The lawsuits filed Wednesday said that specialists at KPMG tried to point out errors in [NCF's] financial statements but were silenced by the KPMG partner in charge of the audits 'to protect KPMG's business relationship with, and fees from, [NCF]. ... If the [NCF] trustee is sucessful, 'it may embolden others to look more closely at the possibility of bringing [accounting] firms to some level of culpability for the things that happened' that led to the credit crisis, Francine McKenna, president of McKenna Partners LLC, a corporate-governance consultancy, said in an interview. ... 'While we have not seen the complaint yet, any claim that the acquiesced to client demands is unsupportable,' KPMG spokesman Dan Ginsburg said in an emailed statement. ... The accounting issues center on provisions in the mortgages the bank sold to investors that required it to take back or make payments on the mortgages if they quickly went bad. When subprime mortgages began to sour in early 2007, [NCF] was on the hook for $8 billion in loans and collapsed soon thereafter", Donna Kardos at the WSJ, 2 April 2009.
Caving in to large clients is the Big 87654's stock in trade. How do you think they got that big? By being aggressive auditors? Well, PCAOB, where are you? Did you already review KPMG's NCF work? If not, why not? Will you provide "expert" testimony for KPMG or the plaintiffs in this matter? Or are you nowhere to be seen?