U.S. SEC sanctions KPMG, Deloitte for poor audit

The top U.S. securities regulator Tuesday charged foreign affiliates of three major accounting firms – KPMG, Deloitte & Touche and BDO – for conducting audits without proper oversight from the Public Company Accounting Oversight Board.

The Securities and Exchange Commission said the firms agreed to settle the charges by paying penalties and disgorging profits from the audits.

None of the affiliates, in Canada, South Africa, and Zimbabwe, admitted or denied the findings that included failing to register with the PCAOB and relying on unregistered auditors to complete the work.