Xerox Corporation
ORG
Xerox Corporation Xerox
Four auditors from KPMG who were involved in its audits of the Xerox Corporation settled suits with the Securities and Exchange Commission. The fines are insignificant in relation to the total of about $55 million already assessed in penalties as a result of the audits, which the S.E.C. said allowed Xerox to engage in fraudulent manipulations of leases for its equipment, inflating profits. Even after Xerox restated its results and accepted a fine of $10 million, KPMG insisted that it had acted properly and that the S.E.C. was pursuing the case to justify its large expenses in the investigation. Four auditors from KPMG who were involved in its audits of the Xerox Corporation settled suits yesterday with the Securities and Exchange Commission, with two of them agreeing to pay the largest fines ever levied by the commission against individual auditors. The fines are insignificant in relation to the total of about $55 million already assessed in penalties as a result of the audits, which according to the S.E.C., allowed Xerox to engage in fraudulent manipulations of leases for its equipment, inflating profits. Even after Xerox restated its results and accepted a fine of $10 million, KPMG insisted that it had acted properly and that the S.E.C. was pursuing the case to justify its large expenses in the investigation.