KPMG approved books of German tech company Comroad. In April, an audit by a new firm found 97% of Comroad's 2000 revenues to be fake. Former CEO Bodo Schnabel is in jail, awaiting trial.
In the wake of Comroad, KPMG will go over the books again of all 35 of its clients listed on the tech-oriented Neuer Markt.
DROPPED THE BALL
KPMG may become embroiled in the questionable financial practices at Zurich-based FIFA, the organization that oversees World Cup soccer.
Arthur Andersen's German partners, seeking refuge from the Enron scandal, unexpectedly canceled plans to merge with KPMG after the Comroad disaster popped up. Instead, they joined Ernst & Young.