In the fall of 2012, KPMG’s Co

In the fall of 2012, KPMG’s Columbus, Ohio office was auditing Jobs Ohio’s books while, at the same time, an out-of-state office of the firm was seeking $1 million in taxpayer money from Jobs Ohio for unnamed client. As the state’s lead economic-development agency, Jobs Ohio is charged with recommending financial incentives for companies seeking to relocate in the state. On November 5, 2012, about the time that the audit was being conducted, KPMG was also listed on a sheet of eight pending grant commitments from the state for fiscal year 2013, one of which was for the unnamed client. Do you think KPMG violated any independence standards in this situation? Be specific about the standards and any threats to independence that may have existed.

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