Cast Art Industries, LLP v. KPMG, LLP
For those of you who watch such things, I caught this email last week announcing that a judge had found sufficient evidence for a jury trial in a case involving KPMG. The suit alleges that the auditors failed to detect a fraud worth approximately $50 million at Papel Giftware, a firm bought by the plaintiffs, Cast Art Industries.
Fraud detection, something that audits often detect, isn't the key role of an auditor. This point may come as a surprise to many lay people but that doesn't stop litigators to try to convince jurors otherwise. When fraudulent activity goes to the very top officers of a firm and is well hidden, auditors may have a tough time finding it.
If you're looking for something more intense to read, get the latest issue of Portfolio and see the story on the Carvel estate. Talk about a page turner: allegations of murder, fraud, adulterous relationships, etc. Now that's a story worthy of print.