KPMG to Split off Australian Insolvency Practice

The KPMG practice that has worked on Australia’s most spectacular corporate scandals is being split off into an independent operation.

KPMG LLP announced its plans this week in an effort to prevent any conflicts of interest with its banking and financial services clients, the Wall Street Journal reported. The decision was prompted by the tougher regulations in the U.S. that cover consulting services by audit firms. In turn, many firms are splitting off their consulting practices.

The insolvency business in recent years has worked on the collapses of HIH Insurance, Pan Pharmaceuticals and the New South Wales Grains Board. At the same time, KPMG serves as auditor for banks that include National Australia Bank Ltd. and Australia & New Zealand Banking Group Ltd.

KPMG partner Tony McGrath said it was becoming more difficult to do the corporate insolvency work, because it would likely involve representing the same banking creditors.

McGrath and partner Colin Nicol, who headed the insolvency business, will manage the new firm, which will be called McGrath Nicol & Partners. All KPMG’s corporate recovery accounts and partners will move to the new operation. The new business, with 14 partners and 140 staffers, will start operations July 1 with offices in Australia.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Upcoming CPE Webinars

Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.
May 1
This material focuses on the principles of accounting for non-profit organizations’ expenses. It will include discussions of functional expense categories, accounting for functional expenses and allocations of joint costs.