SRHS files lawsuit against former auditor KPMG - WLOX.com - The News for South Mississippi

SRHS files lawsuit against former auditor KPMG

(Photo source: WLOX) (Photo source: WLOX)
JACKSON COUNTY, MS (WLOX) -

WLOX News has just learned Singing River Health System has filed a lawsuit against its former auditor, the national accounting firm KPMG.

According to a press release sent to us by the health system, it's suing the accounting firm for, “breach of contract, negligence and professional malpractice.”

According to the release, KPMG had conducted the annual audits for the health system for more than 34 years.

Officials say in 2013, SRHS hired Horne LLP in place of KPMG to conduct that year's audit as a cost saving measure.

It was during that audit that SRHS officials say it was discovered that, “KPMG's financial audits were woefully inadequate, replete with inexcusable computational errors and incorrect assumptions.”

SRHS claims KPMG fell short of the standards that guide accounting professionals and, “negligently botched its audits, in breach of both contractual and professional duties.”

SRHS has filed the lawsuit in federal court in the Southern District of Mississippi. It is seeking damages in an amount to be determined by a jury.

Katherine Treistman, with Susman Godfrey LLP, is representing SRHS in this lawsuit.

“With the filing of this lawsuit and the aggressive turnaround plan already underway, Singing River demonstrates its commitment to serving the people in our community and to overcoming its financial challenges,” the health system said in the release.

Copyright 2015 WLOX. All rights reserved.

Powered by Frankly