Sometimes, when one door closes, another slams in your face
Papa John’s International has dismissed KPMG LLP as its financial auditor and appointed Ernst & Young LLP to handle its accounts for the fiscal year ending December 2019. Papa John’s disclosed in February that it was unable to file its annual report for the year ended December 30, 2018, on time because KPMG required more time to complete its audit of the company’s financial statements.
Then… KPMG agreed to pay a $50 million fine over allegations former members of staff used stolen information to alter some of the accounting firm’s previous audit work and cheated on training exams. The fine was one of the largest ever imposed on an auditor by the SEC.
KPMG admitted to the US Securities and Exchange Commission’s (SEC) allegations and agreed to hire an independent consultant to assess the firm’s ethics and integrity controls, as well as its compliance related to abuse of the exams issued by the Public Company Accounting Oversight Board.