Comments on: Deloitte And Flanagan – A Culture of Non-Compliance?

By: re: The Auditors » Blog Archive » PCAOB Disclosure Of Deloitte Private Report: A Regulatory Inflection Point?

Fri, 28 Oct 2011 03:30:10 +0000

[...] October of 2008, the SEC and FINRA – not Deloitte – caught a Deloitte Vice Chairman trading on insider information in several Fortune 500 clients, including audit clients. Each of those Deloitte audit clients – [...]

By: re: The Auditors » Blog Archive » McKenna Cited By The Financial Times Re: Deloitte’s Flanagan

Sun, 06 Mar 2011 05:34:38 +0000

[...] Francine McKenna, something of an uber-blogger on all matters re: auditors, flagged a post she wrote in 2008 about Flanagan. Worth [...]

By: FT Alphaville » SEC charges 35-year Deloitte veteran with insider trading

FT Alphaville » SEC charges 35-year Deloitte veteran with insider trading — Wed, 04 Aug 2010 18:21:42 +0000

[...] Francine McKenna, something of an uber-blogger on all matters re: auditors, flagged a post she wrote in 2008 about Flangan. Worth [...]

By: re: The Auditors » Blog Archive » Deloitte Wins Major Round Re: Alleged Inside Trader Flanagan

Tue, 05 Jan 2010 19:50:37 +0000

[...] Francis Pileggi at the Delaware Litigation blog reports that Deloitte has won a partial summary judgment against Thomas Flanagan, the Chicago-based, ex-Vice Chairman of the firm accused of multiple counts of insider trading. My original post, describing how I broke the story first on Twitter based on a confidential tip, is here. [...]

By: re: The Auditors » Blog Archive » Zombies Among Us: The Mainstream Media and Financial Journalism

Sun, 27 Dec 2009 18:06:51 +0000

[...] Chairman’s alleged insider trading since the news broke last Halloween. (I broke the story on Twitter and local press did not pick up until a week later.) Tom Flanagan, the Deloitte partner, was a [...]

By: re: The Auditors » Blog Archive » Looking Out For Me, Myself, And I

re: The Auditors » Blog Archive » Looking Out For Me, Myself, And I — Sun, 15 Mar 2009 23:45:08 +0000

[...] of partner misconduct at Deloitte. Mr. Ray has an ongoing super-embarrassing issue with Mr. Flanagan, the accused former Deloitte Vice Chairman who allegedly traded on inside information about twelve of his audit clients. Mr. Ray is on the [...]

By: Anonymous

Anonymous — Wed, 14 Jan 2009 23:40:00 +0000

I work at Deloitte, and I assure you, Independence rules are rigorous. Even lower-level employees are required to complete their independence forms each year.

By: Anonymous

Anonymous — Sun, 16 Nov 2008 21:31:00 +0000

This man was reported to the internal ethics hotline. The ethics “investigator” called him and asked him a couple questions. He lied to the investigator and the investigator went away. Two months later he was named partner. It was the most pathetic investigation ever. I guess that is why I believe Deloitte turns a blind eye to bad behavior.

He is sloppy though. He left client documents on what I will describe as a non-work computer.

There is so much to this guy’s story. This little blogging is telling so little of his story. I guess if you have some transfer pricing to do – Deloitte may not be the place to turn.

By: Francine McKenna

Francine McKenna — Sat, 15 Nov 2008 19:22:00 +0000

I would not print a name under these circumstances. Nor a comment that had too much identifying information. If I say it, it’s one thing. I have limited naming to firm leadership or a situation like Flanagan where the lawsuit is public record. The best thing for anyone who has suspicions or specific information to do is report to internal ethics hotline and/or PCAOB if it’s independence only or SECOND if it’s insider trading.

By: Anonymous

Anonymous — Sat, 15 Nov 2008 19:09:00 +0000

To 11/15/2008 @ 9:54 - what did you do based on your assertions? All the firms have hotlines where you can call into. I presume that you understand that managers have different independence rules than partners? Perhaps he was allowed to do something as a manager that he would be allowed to as a partner, and that caused the delay.

However, if in fact this person is actually dishonest and has done dishonest things, I would hope for your sake you have reported what you think you know, because that would be your obligation.

Therefore, rather than throw out things, you should also taking action. A bold move would be to name this person right here in this blog. Call out this loser and get the issued fixed.

At the end of the day, independence and honesty really is not about the Firms, it is up to the individual, and for CPA's, we have to live up to our professional standards set forth by the AICPA.