KPMG is under fire and GE is scared – The Wall Street Journal

DUBLIN — We've previously covered the astonishing story of the rise and fall of US industrial giant General Electric (GE). One of the more interesting – to my mind at least – aspects of the tale is the role of KPMG, which has been auditing GE's books for 110 years. GE is under investigation for some dubious accounting practices and scandal-hit KPMG, as its auditor, is front and centre in the whole mess. Financial shenanigans are part of the reason why GE is in the mess it's in, and KPMG's job at GE is to sniff out financial shenanigans. Clearly, something has gone wrong in the process. KPMG, of course, is under fire from all quarters for the poor quality of its audits and under huge pressure to turn things around or, potentially, face regulatory action. And this all makes GE's upcoming audited results very interesting. A struggling GE desperately needs a gentle, loving audit to keep its creditors at bay, and a bruised KPMG needs to get tough. It will be interesting to see what happens. – Felicity Duncan

The Last Thing GE Needs Is an Aggressive Auditor: KPMG Is Under Pressure to Be One

By David Benoit

(The Wall Strett Journal) Accounting giant KPMG LLP has been blessing the books of General Electric Co. for 110 years, but the audit currently under way has significant risks for both companies.

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