Former KPMG partner pleads guilty in audit gaming conspiracy

A former KPMG partner pleaded guilty to conspiracy for his role in a scheme to game the audit oversight process by obtaining confidential information from the audit regulator about its inspection plans.

The U.S. Attorney’s Office for the Southern District of New York announced that David Britt, former co-head of the banking and capital markets group within the firm’s audit group, pleaded guilty to one count of conspiracy to commit wire fraud. His sentencing is scheduled for May 8, 2020.

The charge stemmed from his role in a scheme to defraud the U.S. audit regulator, the PCAOB, by obtaining confidential lists of the audits that it would be reviewing so that KPMG could bolster its performance in PCAOB inspections.

“Using the playbook he illicitly acquired, Britt used that information to improve the results his of firm’s audits,” said Manhattan U.S. attorney Geoffrey Berman.

“Independent reviews of accounting firm audits exist to ensure their integrity and accuracy. David Britt corrupted that process and now faces time in federal prison,” he added.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.