Comments on: BDO International Dodges A Bullet, But Threat Still Remains…

By: re: The Auditors » Blog Archive » Can I Have Your Autograph: Signing The Audit Report

Tue, 26 Apr 2011 19:49:50 +0000

[...] 7. BDO: The engagement partner’s responsibilities…are set out extensively in professional standards…effectiveness …routinely monitored as part of a firm’s system of quality control, in addition to periodic inspections…” (fm: Yeah, just like BDO International monitored quality for BDO Seidman and the partner in charge of their client Banco Espiritu Santo. So, why did you fight accountability?) [...]

By: Florida Court Overturns $521M Verdict in BDO Seidman Case, Orders New Trial

Florida Court Overturns $521M Verdict in BDO Seidman Case, Orders New Trial — Fri, 18 Feb 2011 22:46:44 +0000

[...] SA. The court has ordered a new trial in the case, Dow Jones Newswires reports. BDO Seidman has previously acknowledged that it does not have $521 million available as a US firm, and that paying such a judgment would [...]

By: re: The Auditors » Blog Archive » For The Auditors Nothing’s Over Until It’s Over: Or Is It?

Wed, 24 Mar 2010 17:40:00 +0000

[...] on how well Steven Thomas tries it, the media will be all over the “KPMG will fail” scenario. Losing the case [...]

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

Mon, 30 Nov 2009 04:28:34 +0000

[...] the case of Banco Espirito Santo v BDO International, attorney Steven Thomas was disappointed in June of this year by the judge’s ruling and jury’s decision. The jury’s finding that BDO International [...]

By: fm

fm — Fri, 24 Jul 2009 00:37:32 +0000

@Sam

The CoutroomView clips are the original and only source of the live courtroom coverage that I know of. I have included some clips in each post on the subject. They charge a subscription fee for this coverage. I have access to the whole trial and plan to include some more clips when I publish my interview with Steven Thomas BES attorney. I will take your request into consideration. The verdict and the judges decisions mid trial were my choices too and I will make that request to CourtroomView.
Francine

By: Sam

Sam — Fri, 24 Jul 2009 00:21:04 +0000

Am I missing somthing, I still haven’t seen any original clips from the BDO International trial. I would have like to see the Judge’s instructions and the verdict. Are they somewhere else, original not the ones from CVN Courtroom?

By: re: The Auditors » Blog Archive » PwC Global Board: “Risk And Quality Top Priorities”

Thu, 02 Jul 2009 13:32:10 +0000

[...] One thing we can be clear about, though. The fact that no one except those closest to it understand the structure is not by default but by design. It is designed to accomplish just exactly what they are trying to accomplish now – to weasel out of responsibility and liability when something goes wrong. But it’s not unique to India or PwC. In some countries, New Zealand for example, there may be many firms operating under the KPMG New Zealand umbrella but they are no more aligned financially or strategically than Christchurch is with Tokyo. Separate legal entities with separate partners who share risk and reward with only their own partners is a legacy of how the “global” firms and “national” firms developed for marketing and branding purposes. It does not necessarily imply anything more, but of course should for the good of shareholders and the capital markets, as we have seen with the absurd testimony and result in the BDO International trial. [...]

By: RE :20

RE :20 — Tue, 30 Jun 2009 14:59:58 +0000

“as @24 said — there is high variability in skills and quality of work internationally. But isn’t that also true across US offices and practices. If you use people in a different US office or bring in practice specialists… there will be a variety of levels of quality you get in the resources assigned to the job.”

What’s surprised me the most as I’ve travelled across the country doing audits for a Big Four Firm is that the practices in the smaller offices often seem to be of better quality than the larger ones. For example, workpapers I’ve seen out of Cincinnatti and Detroit were much better than comparable ones from Chicago and NYC. Any ideas why?

I tend to think in more regional cities – the top accounting talent might go to a Big Four Firm as other financial positions aren’t as readily accessible whereas in financial meccas (e.g. NYC) – the lure for the best grads is elsewhere (e.g. private equity, hedge funds, ibanking) and so the accountants who land gigs at the Big Four in NYC etc aren’t really the best but rather the middle tier students, coupled with international kids.

By: Anonymous

Anonymous — Tue, 30 Jun 2009 02:22:28 +0000

@23 – I don’t know about audit — in my practice I find the real perverse part that the 20-somethings think they are capable of doing advanced work and managing engagements and clients. Sounds like in the audit world — the 20-somethings are told they are capable and seem to know they are not. I wonder.

By: Anonymous

Anonymous — Tue, 30 Jun 2009 00:44:01 +0000

@ Chicago Accountant

“…Do you have any idea how bad auditor fatigue was in the last busy season in a number of offices and practices? I watched it happen with a certain level of perverse interest. You have 20 somethings, many who are not CPAs, working harder than they have ever worked in a busy season…”

What’s really perverse is watching these fresh-from-university twenty-somethings slowly drowning. A beloved friend was quite literally consumed by the insane hours, utilization demands and the constant fear of being the one let go. He “survived” busy season and layoffs thus far…but at what cost?