Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Status of players in KPMG fiasco from leaked PCAOB inspection lists.

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Image courtesy of Adobe Stock.

As refresher, some time back senior level staff from KPMG worked to illegitimately gain access to the list of engagements which were going to be subject to inspection by PCAOB. You can catch up on the news by reading my posts with tag of Big 4.

This is old news at this point. Those of us interested in the ethical failure still want to monitor the status of the players. Previous list, found here, has been reworked since it was getting a bit cumbersome to update and confusing to read.

The five KPMG staff and one PCAOB staff who were charged are listed below with their status at various times. Updates will be mentioned as time passes and this page updated with new status.

Overall status:

  • 10/19/20 – 1 released from prison, 1 sentenced & awaiting deportation, 2 awaiting sentencing, 2 convictions on appeal.
  • 12/13/20 – 4 sentenced (of whom 1 released from prison, 1 to serve house arrest after deportation, 2 on probation/supervised release) and 2 convictions on appeal.


  • 10/18/20 update – David Britt was sentenced to six months home confinement to be served from his new home in Australia after he is deported from the United States.
  • 12/13/20 update – Thomas Whittle sentenced to two years supervised release and Brian Sweet sentenced to time serviced, three years probation, and to-be-determined restitution.


Participants and their status:


Scott Marcello

Former KPMG partner until ??

Vice Chair of Audit

  • Not indicted.



David Middendorf

Former KPMG partner until 4/17

National Managing Partner for Audit Quality and Professional Practice Group, in Department of Professional Practice (DPP)

Reported to Marcello

age 55 in 12/19



Thomas Whittle

Former KPMG partner until 4/17

National partner-in-charge for Quality Measurement in DPP

Reported to Middendorf

age 56 in 12/19



Chief Auditor

  • Not indicted.



David Britt

Former KPMG partner until 2/17

Co-leader, Banking and Capital Markets Group

Reported to Chief Auditor

age 55 in 12/19



Brian Sweet

Former KPMG partner in DPP, 4/15(?) to (?)

Former PCAOB associate director 3/14 to 4/15

age 42 in 12/19



Cynthia Holder

Former KPMG executive director, 8/15 to 4/17

Former PCAOB Inspections Leader, 12/11 to 8/15

  • 1/22/18 – indicted.
  • 10/16/18 – guilty plea (4 counts: 2 wire fraud, 1 wire fraud conspiracy, and 1 conspiracy to defraud U.S.).
  • 4/5/19 – scheduled sentencing; prosecutors calculate could be 41 to 51 month sentence; postponed on 4/5/19.
  • 6/7/19 – postponed date scheduled for sentencing (per tweet by @TheNewsHam).
  • 8/9/19 – Sentenced to 8 months in prison. Supervised release. Fine of $400. Subject to restitution with amount to be determined.
  • Bureau of Prisons register number 35321-479.
  • As of 11/20/19, scheduled release date is 6/30/20.
  • 11/29/19 – Banned from practice before SEC.
  • As of 1/26/20, scheduled release date is 6/13/20.
  • 6/20/20 – released from custody per Bureau of Prisons.



Jeffrey Wada

Former PCAOB Inspections Leader, 2/12 to 2/17

age 44 in 12/19

  • 1/22/18 – indicted.
  • 2/11/19 – scheduled trial date.
  • 3/11/19 – convicted on three of four felony counts.
  • August 2019 – expected sentencing.
  • 10/11/19 – Sentenced to 9 months in prison. Restitution to be determined.
  • 12/24/19 – Bureau of Prisons register number 75835-112. Not in custody as of 12/24/19.
  • 1/15/20 – Banned from practice before SEC.
  • 4/6/20 – Not in custody.
  • 9/16/20 – Appealing conviction.
  • 10/18/20 – Still on appeal; Bureau of Prisons status still not in custody.
  • 12/13/20 – Still on appeal; Bureau of Prisons status still not in custody (Register 75835-112).


Written by Jim Ulvog

October 19, 2020, 9:06 am at 9:06 am

Posted in Audits, Fraud

Tagged with ,

One Response

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  1. […] update:  This list is getting cumbersome to update and read. It has been reformatted and posted here.  This post will not be updated after today. Check the newer post for all future […]

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