Publications
Publications
- December 2007 (Revised June 2009)
- HBS Case Collection
KPMG (A): A Near-Death Experience
By: Robert G. Eccles and Eliot Sherman
Abstract
Describes the way in which "Big Four" auditor KPMG dealt with an indictment stemming from the firm's sale of tax shelters. In 2005 Tim Flynn has been KPMG Chairman for a matter of days when he learns that the government is preparing to indict the firm on charges of selling illegal tax shelters. Flynn has to decide whether to fight the charges and risk the dissolution of his firm, or cooperate with investigators, effectively keeping the firm safe but sacrificing the tax partners involved in the shelter sales. Further, the case describes the government's prosecution of former KPMG tax partners and asks students to determine whether prosecutorial tactics during the government's investigation were warranted or represented a case of overreaching.
Keywords
Accounting Audits; Crime and Corruption; Taxation; Lawsuits and Litigation; Crisis Management; Partners and Partnerships; Accounting Industry; Service Industry
Citation
Eccles, Robert G., and Eliot Sherman. "KPMG (A): A Near-Death Experience." Harvard Business School Case 408-073, December 2007. (Revised June 2009.)