Insider Trading Scandal: Warping the Integrity of KPMG Analysis from Corporate Governance Perspective

KPMG International has been touted as an auditing firm to reckon with, being one of the Big four of accounting firms, boasting of outstanding performance, achievements and laurels. Its integrity and consistent ethical standards, along with high standards of performance have proven to a benchmark in the audit industry. However, this shining example has been besmirched by a plaguing scandal, in common parlance known as the insider trading scandal of 2013. With the entire audit industry and economic institutions in shock, this paper attempts to decipher the motives behind the scandal, its ensuing consequences and the paucity of corporate governance practices that has brought the foundations of KPMG under fire. The paper aims to analyse the missing corporate governance aspects that led to this scandal and how dismissing such controversies as one time cases can break down the fabric that binds accountability and quality of audit industries.