SEC Eyes Individual Culprits In Auditor Crackdown

Law360, New York (March 31, 2006, 12:00 AM EST) -- Three former KPMG auditors have found themselves in the U.S. Securities and Exchange Commission’s crosshairs for their role in an accounting scandal at Tenet Healthcare Corp. involving the company’s 2002 financial records. The probe highlights the Commission's increased focus on the role of individual auditors in accounting scandals, experts say.

The auditors—David Huffman, Aron Carr and Clete Madden—had been accused of altering and backdating financial statements in an attempt to “create audit evidence” after it had been revealed that Tenet was exploiting the Medicare program in...
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