GE Urged to Drop Auditor KPMG Following Accounting Missteps

  • CtW Investment Group is latest to demand accounting overhaul
  • CEO Culp last year agreed to seek bids, opening door to change

Photographer: Simon Dawson/Bloomberg

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An adviser to union pension funds is calling on General Electric Co. to drop KPMG as its auditor after a series of accounting missteps and strategic blunders rattled investor confidence in the one-time blue-chip company.

In a letter sent Tuesday to GE’s lead independent director, CtW Investment Group urged the manufacturer to find a new accountant for the 2020 review and commit to changing auditors every 10 years. The group also is seeking stronger oversight of capital allocation following an “ill-considered buyback strategy’’ and poor deal-making in recent years.