Misplacing $110 Million

from the it's-just-that-simple dept

You hire accountants and auditing firms to make sure that your financial statements have some (if minimal) basis in reality. The auditing firm is supposed to check to make sure what you say you have is really what you have. So why didn’t KPMG catch math errors that lead to $110 million missing on the financial statements of CMGI? They just didn’t. They also charged CMGI $4 million to not do their job properly. CMGI also says they won’t fire them for charging $4 million to miss $110 million. Math errors and shoddy auditing “just happen” apparently. Maybe KPMG should spend less time singing about their “vision for global strategy” and forcing small time webloggers to register to link to them and spend some of that time and money sending their auditors to a math refresher course.

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