The Case Of Wells Fargo

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According to Fortune Magazine, Wells Fargo’s fake accounts became one of the biggest corporate scandals of 2016. What happened? Wells Fargo employees made fake accounts without consent of the bank’s customers. The reason that the employees created these fake accounts was to meet sales quotas set by executives of the bank. The employees thought they could open and close these accounts before a customer would notice, but these workers thought wrong. This misconduct was thought to have started in 2011 until 2015. We discover later down the timeline that the timeframe claim wasn’t completely accurate.
On September 8, 2016, allegations were made towards Wells Fargo in reference to over 2 million accounts opened in customers’ names without their knowledge. Wells Fargo paid 185 million dollars between three lawsuits to the government. Furthermore, the bank admitted that there is a possibility the fraudulent behavior occurred sooner than their original claim of 2011.
The FBI and prosecutors from New York and California began to examine the bank for the likelihood of criminal charges on September 14, 2016. Shortly after, the House of Representatives Financial Services Committee opened …show more content…

We also need to know the relevance of the audit evidence gathered. Does the audit evidence support the assertion made by KPMG? KPMG wrote a letter in response to the senators’ concerns. The external auditor responded stating: “Most importantly, KPMG is confident that its audits and reviews of Wells Fargo's consolidated financial statements were appropriately planned and performed in accordance with applicable professional standards.” KPMG claims to have followed all possible procedures, but in the opinion of these senators, the firm neglected to disclose the fraud that had a significant impact on the bank’s financial

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