Insider trading fiasco in audit world

In a major embarrassment for one particular CPA firm and all CPAs in general, last week a partner from one of the Big 4 firms was indicted for conspiracy to commit insider trading.

Mr. Scott London, formerly a partner with KPMG, was indicted by the US government and charged with insider trading by the SEC in the context of allegedly passing information about his clients to a buddy who allegedly traded on the info.  He obtained that information as a part of his role as a senior level audit partner.

Several posts at my other blog, Attestation Update, talk about the story as it developed during the week. Here’s the posts in chronological order:

I’ve mentioned the front-page-of-the-newspaper-test as a way to help analyze ethical decisions. This case provides two illustrations:

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