Tenet Healthcare Corp., Dallas, said it is replacing KPMG as its independent auditor with Deloitte & Touche, effective after the audit of Tenets 2006 financial statements. KPMG and its predecessors have conducted independent audits for Tenet and its main predecessor company, National Medical Enterprises, since at least fiscal 1994, according to securities filings. Last January, Tenet was required to restate financial results for fiscal 2000-03 because of incorrect accounting for managed-care contractual allowances. Meanwhile, in March 2006, the Securities and Exchange Commission charged three KPMG accountants with altering audit working papers in 2002 after questions were raised about Tenets Medicare outlier payments. That month, the accountants settled the charges by agreeing not to practice or appear before the SEC, with the opportunity to seek reinstatement at a later date. In a statement, KPMG said the three accountants no longer work at the company. KPMG said it previously notified the SEC that a violation of firm policy took place in connection with the firms work for Tenet in 2002. -- by Vince Galloro
Tenet dumps longtime auditor KPMG
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