SEC SANCTIONS ACCOUNTANTS KMG MAIN HURDMAN
The Securities and Exchange
Commission sanctioned the national accounting firm KMG Main
Hurdman for improper professional conduct.
    It said the New York firm consented to the entry of the
commission's order without admitting or denying the finding.
    The proceedings arose from a 1982 audit of the financial
statement of the First National Bank of Midland, Texas, and
1983 and 1984 audits of financial statements of Time Energy
Systems, Inc, Houston.
    Midland was declared insolvent in 1983.
    The SEC ordered that any new review of Main Hurdman
procedures to include the adequacy of consultations between the
firm's main office and its local offices and the implementation
of the firm's policies.
    It said the Midland office conducted the Bank audit,
although some senior partners in New York were consulted, and
its Houston office conducted the Time Energy audits.
    The SEC said also that Main Hurdman agreed that if it is
acquired by a larger firm, its practices will be integrated
into the combined firm, including training programs and quality
control reviews.
 Reuter
