a. Did KPMG do anything wrong?
b. What is a fiduciary duty?
c. If KPMG wanted to start a consulting business, what should it have done?
While serving as outside auditors for the consulting firm of Stern, Stewart & Co., KPMG discovered how much money Stern, Stewart was earning from its financial management and incentive compensation consulting practice. KPMG sent six of its employees to a Stern, Stewart seminar to learn about this consulting practice. It then hired two of Stern, Stewart's consultants and started its own competing business.