- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-11-15T22:18:00
The Japanese affiliate of Big Four audit firm KPMG was assessed a $500,000 penalty by the Public Company Accounting Oversight Board (PCAOB) for quality control deficiencies regarding journal entry testing.
KPMG Japan must review and evaluate its policies and procedures concerning journal entry testing after the PCAOB found the firm’s policies insufficient to provide reasonable assurance its auditors were conducting testing in line with applicable standards, the regulator said in a press release Wednesday.
The firm’s violations occurred from 2019-21, the PCAOB said in its order. During that time, the regulator found KPMG Japan’s system of quality control failed to include adequate monitoring procedures to ensure effective journal entry testing.
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