In a statement, the U.S. Securities and Exchange Commission said, it has suspended two former KPMG auditors from practicing before the regulator after it found that they had failing to properly conduct an audit of the now-defunct, not-for-profit college that had overstated its assets.
The SEC has charged Jennifer Stewart and Christopher Stanley with improper professional conduct. The SEC has alleged that the former KPMG employees had issued an audit report of the College of New Rochelle’s 2015 financial statement with outstanding items and unanswered questions.
The College of New Rochelle closed in 2019.
The SEC’s statement further reads, Stanley and Stewart have both agreed to the suspend their appearance or practicing before the SEC as accountants, without admitting or denying the findings. They have a right to apply for reinstatement after e period of one year and three years, respectively.
Lawyers for Stanley and Stewart did not immediately respond to requests for comments.
In recent years, KPMG and other firms have come under scrutiny over the quality of their assessments.
In 2019 KPMG paid a large fine after the SEC investigation revealed a cheating scandal; last year three former KPMG auditors settled SEC-related charges, without admitting or denying the allegations.
In a statement KPMG’s spokesperson said, the company is committed to executing quality audits and fostering integrity. The actions described by the SEC “do not live up to KPMG standards.”