Saga Between KPMG and Theater Group Continues

The ongoing debacle between Livent, Inc. and KPMG continued yesterday in a Toronto court when lawyers for former Livent exec Garth Drabinsky brought a suit against the Big 5 firm for conflicts of interest.

CPAs will recall that Livent, producer of several well-known Broadway shows, including Phantom of the Opera and Ragtime, made the news in August 1998 when its new owners, investment banker Roy Furman and former Walt Disney executive Michael Ovitz, revealed that an internal audit had uncovered serious accounting irregularities. Among those involved was Drabinsky, one of two accused of $97 million in fraud.

The latest allegations focus on the fact that KPMG's Toronto and Los Angeles offices allegedly failed to disclose their involvement regarding KPMG's investigation of Livent and the firm's forensic accounting practice. Also of concern is an alleged secret retainer to help Livent reinstate its financial results.

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...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.