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It's official, Herbalife (HLF) confirms that KPMG has resigned as its accountant due to issues...

It's official, Herbalife (HLF) confirms that KPMG has resigned as its accountant due to issues of insider trading by a senior KPMG partner assigned to HLF's account, not due to any accounting irregularities. Shares remain halted.
Comments (5)
  • jmodrkrk
    , contributor
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    resigned as its auditor or its accountant? not the same thing.
    9 Apr 2013, 11:16 AM Reply Like
  • nibelung
    , contributor
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    Herbalife (NYSE: HLF) today announced that KPMG LLP notified Herbalife on April 8, 2013 that KPMG was resigning, effective immediately, as Herbalife’s independent accountant. KPMG stated it had concluded it was not independent because of alleged insider trading in Herbalife’s securities by one of KPMG’s former partners who, until April 5, 2013, was the KPMG engagement partner on Herbalife’s audit. KPMG advised the Company it resigned as Herbalife’s independent accountant solely due to the impairment of KPMG’s independence resulting from its now former partner’s alleged unlawful activities and not for any reason related to Herbalife’s financial statements, its accounting practices, the integrity of Herbalife’s management or for any other reason.
    9 Apr 2013, 11:18 AM Reply Like
  • jmodrkrk
    , contributor
    Comments (94) | Send Message
     
    weird that the business wire reports it like that -- the paragraph following the above alludes clearly to KPMG's audits, in their function as auditor, I just found it odd that the report (and the SA headline) read as "accountant", which is true to the report.

     

    "None of KPMG’s audit reports on Herbalife’s financial statements for the fiscal years ended December 31, 2010, 2011 and 2012 or KPMG’s audit reports on the effectiveness of internal control over financial reporting as of December 31, 2010, 2011 and 2012 contained an adverse opinion or a disclaimer of opinion, nor was any such report qualified or modified as to uncertainty, audit scope or accounting principles."
    9 Apr 2013, 11:35 AM Reply Like
  • nibelung
    , contributor
    Comments (79) | Send Message
     
    Come to think of it, accountants are normally in-house, it is the auditors that are external and independent; I doubt anyone would pay/afford KPMG or the others for the daily stuff.
    The pr wording may be flaky, accountant should read auditor. We can thank the robots for the rest.
    9 Apr 2013, 11:52 AM Reply Like
  • jmodrkrk
    , contributor
    Comments (94) | Send Message
     
    right, the headline reads (to me) like they canned their internal accountant not an independent third party which i don't think is what they're trying to say.
    9 Apr 2013, 12:16 PM Reply Like
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