terps0920

Auditor at a Big 4 firm here, I find it unbeliveable that KPMG continued to issue an unqualified opinion (clean audit report)on the financials with this revenue recognition policy. How compliant do you think the partners at KPMG were in the cover up?

I know from experience that revenue recognition is the number one issue when it comes to any SEC company. The only thing I can think of is that the KPMG partners were pressured by Halliburton to turn a blind eye because of the leverage of the massive audit fee they get yearly.

Thanks for the response. I think this is even tougher to swallow then the actions of the haliburton accoutning department. You have an "independent" auditing firm knowingly issuing financial statements that directly contradict the SEC AND their OWN guidance. This is all while KPMG collects 16M (figure from SEC filing) in audit and "other sevice fees". This is a prime example of the conflict of interest issues in the public accounting industry.

Sorry, should have clarified, they are issuing a unqualified opinion on the F/S year after year when their own guidance says there revenue recognition is blatantly incorrect and blatantly causing a material mistatement. Its not that the fee doesnt match the work, the point is that the partners/firm have a lot at stake if Halliburton pressures them to turn a blind eye to recording 10 BILLION (per the article) in equipment sales revenue incorrectly.

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