Comments on: Auditors Not Trying To Wiggle Off The Hook. Really.

By: Auditors Abandon Investors On Liability Limits - Francine McKenna - Accounting Watchdog - Forbes

Thu, 10 Mar 2011 13:04:43 +0000

[...] insurance coverage or capital. Until this transparency and disclosure is assured, I am skeptical of any claims of poverty and vulnerability on the part of the [...]

By: re: The Auditors » Blog Archive » Auditors Under Pressure In The UK: Or Are They?

Tue, 25 Jan 2011 13:00:04 +0000

[...] of the cases I mentioned in the post that used this quote in April of 2009 have been settled. But, since then, there have been new ones, in particular the cases against Ernst [...]

By: re: The Auditors » Blog Archive » Systemic Risk! Dominance! Momentum! Auditors In Crisis. Again.

Fri, 15 Oct 2010 19:43:06 +0000

[...] started in the UK back in early 2009. The auditors had been claiming a “good crisis.” They fear that a [...]

By: re: The Auditors » Blog Archive » Top Ten Things Lawyers Should Know About Auditors

Fri, 17 Sep 2010 14:18:54 +0000

[...] easier to say an accounting treatment is right or wrong. Principles-based guidance leaves wriggle room and a pretty sure shot at sneaking liability caps for the auditors in through the back door. [...]

By: Joel Font

Joel Font — Fri, 11 Dec 2009 17:50:53 +0000

Francine, excellent article and discussion. I recently wrote an article in my blog shedding light on this problem from the Internal Audit perspective. Most of these problems are not new, but as always, when bad times come, all the warts no one cared to see before, come to light!

My suspicion is that when all the smoke clears, there will be more of the same. With new rules, new requirements and new guidance papers. Addressing the underlying root causes of the current mess is unlikely to happen because no one in the political establishment understands or has anything to gain by it. The blame game however is easy and cheap to roll out. It is simplistic to blame the Auditors en masse for what has happened and will continue to happen. There are thousands of honest and ethical auditors who have to deal with these problems on a daily basis and have few options aside from dismissal or changing careers. We auditors are just one leg of a Centipede which we do not control, or have much influence over. Having said that let me also add that I agree with you regarding the Big Four. There is just too much smoke in the room for there not to be at leat a little fire!!

By: re: The Auditors » Blog Archive » Suing Audit Firms re: Madoff: The Iguana In The Room

Tue, 08 Dec 2009 04:06:14 +0000

[...] dismissed on forum non conveniens grounds. In addition, Pricewaterhouse International is trying to wiggle off the hook. “PricewaterhouseCoopers International Ltd. said it should be dropped from the case because [...]

By: re: The Auditors » Blog Archive » BDO International: “Manage and Control” Means Slam Dunk For BES

Tue, 09 Jun 2009 18:53:54 +0000

[...] Or is Thomas limbering his fingers and toes for the big prize, US$1 billion dollars or more from KPMG International for New Century? Is Thomas going to be the one to bring the monster suit against PwC International for Satyam? I think the PwC case will claim damages of more than US$1 billion dollars. If he gets it right with BDO International, he or any of the others such as Stuart Grant who brought the case against Deloitte International for Parmalat, will have a good template. And he will have poked a hole the size of a Mack truck into the previously impermeable accounting firm “global network” sham structure. [...]

By: re: The Auditors » Blog Archive » BDO International - Yellow Card or Red Flag?

Thu, 21 May 2009 02:13:32 +0000

[...] never, either individually or collectively, be able to step up and absorb the detritus from another Big 4 firm failure, either in the US or out. [...]

By: Anonymous

Anonymous — Sat, 02 May 2009 04:12:32 +0000

@Okay

Just because your royal highness thinks this is a weak discussion doesn’t make it so. Please get over yourself.

By: uncle sam

uncle sam — Sat, 02 May 2009 04:10:20 +0000

The PCAOB is staffed primarily with ex-Big 4 auditors

One of the problems exactly…also, it is no question audits would be cheaper, though you can debate quality all you want. If we’re so anti govt, why don’t we take the FDA and break it up into 10 big, for profit companies and then tell all the drug companies that they need to get approvals from one of these companies to sell drugs to the company. Then, on top of that, make the drug companies pay these firms and have them bid for work. I’m sure you’d feel really great opening a bottle of the latest childrens drug for your 3 year old.

I know many will say either “the FDA has had mess ups” or “the threat of litigation will keep them honest”

1) yes the FDA has messed up, but if the FDA had messed up with the equivalent of the enron/worldcom debacle alone, thousands would most likely be dead.
2) maybe litigation will keep them honest. Do you want it to be your child that suffers before this stuff gets to the courts? If its in litigation, than that means something bad has already happened.

I wish someone would do a serious, independent study on different paradigms for audit and not just parrot off the hackneyed “government is incompetent” arguments.