KPMG ends contract with Broward Health over audit dispute

Broward Health in Fort Lauderdale, Fla., split with accounting firm KPMG after the firm refused a contract addendum that would have extensively restricted its inquiry powers into Broward's activities, reports Sun Sentinel.

The addendum would effectively prohibit KPMG from investigating possible corruption in its annual audit of the hospital system. The addendum would limit KPMG's ability to request documents the system produced or may produce for law enforcement agencies and prohibited KPMG from evaluating Broward's compliance with laws and regulations, according to the article.

Broward officials said they added the addendum over concerns KPMG would be unable to certify the system's financial statements by the end of the year, due to the length of KPMG's possible investigation into corruption allegations against the system.

Karen Mitchell, the KPMG partner responsible for the Broward Health account, rejected the addendum during a meeting with system board members Sept. 7. She did not confirm whether the firm was planning to investigate corruption charges.

"We found the addendum to be unacceptable. It was in direct violation of government auditing standards," Ms. Mitchell told Sun Sentinel.

The board voted 4-1 to terminate its contract with KPMG.

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