Comments on: The “Last Out” May Come From Left Field… http://retheauditors.com/2009/07/13/the-last-out-may-come-from-left-field/ The Business of the Big 4 Audit Firms Thu, 24 May 2012 01:48:07 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: re: The Auditors » Blog Archive » Not Over Until It’s Over: Price Waterhouse India Settles Satyam http://retheauditors.com/2009/07/13/the-last-out-may-come-from-left-field/comment-page-1/#comment-154432 re: The Auditors » Blog Archive » Not Over Until It’s Over: Price Waterhouse India Settles Satyam Mon, 11 Apr 2011 04:34:56 +0000 http://retheauditors.com/?p=2373#comment-154432 [...] The loss of a major network member firm from regulatory or legal actions  - Japan, Russia, Germany, the UK, India, Ireland, and soon China  - would mean the end of these networks as we know it. But will local regulatory and political forces allow it?  This is the closest we’ve come to regulators shutting down a foreign audit firm and, yet, the firm was allowed to essentially start over with generous help from the rest of the PwC global network. As serious as these sanctions are against PW India – and they will be costly – this decision essentially allows history to keep repeating itself, over and over, audit failure after audit failure. [...] [...] The loss of a major network member firm from regulatory or legal actions  - Japan, Russia, Germany, the UK, India, Ireland, and soon China  - would mean the end of these networks as we know it. But will local regulatory and political forces allow it?  This is the closest we’ve come to regulators shutting down a foreign audit firm and, yet, the firm was allowed to essentially start over with generous help from the rest of the PwC global network. As serious as these sanctions are against PW India – and they will be costly – this decision essentially allows history to keep repeating itself, over and over, audit failure after audit failure. [...]

]]> By: Auditors Abandon Investors On Liability Limits - Francine McKenna - Accounting Watchdog - Forbes http://retheauditors.com/2009/07/13/the-last-out-may-come-from-left-field/comment-page-1/#comment-154159 Auditors Abandon Investors On Liability Limits - Francine McKenna - Accounting Watchdog - Forbes Thu, 10 Mar 2011 00:17:49 +0000 http://retheauditors.com/?p=2373#comment-154159 [...] when the external auditor performs work to support an audit in multiple global locations. The last out for the audit firms could come from almost [...] [...] when the external auditor performs work to support an audit in multiple global locations. The last out for the audit firms could come from almost [...]

]]> By: re: The Auditors » Blog Archive » All Points Bulletin: Auditor Litigation Spans The Globe http://retheauditors.com/2009/07/13/the-last-out-may-come-from-left-field/comment-page-1/#comment-154157 re: The Auditors » Blog Archive » All Points Bulletin: Auditor Litigation Spans The Globe Wed, 09 Mar 2011 22:38:16 +0000 http://retheauditors.com/?p=2373#comment-154157 [...] last out for the audit firms could come from almost [...] [...] last out for the audit firms could come from almost [...]

]]> By: Francine McKenna: Will Auditors Ever Answer to Investors for Aiding and Abetting? http://retheauditors.com/2009/07/13/the-last-out-may-come-from-left-field/comment-page-1/#comment-119179 Francine McKenna: Will Auditors Ever Answer to Investors for Aiding and Abetting? Wed, 30 Jun 2010 20:56:56 +0000 http://retheauditors.com/?p=2373#comment-119179 [...] confusing to me is that the Private Securities Litigation and Reform Act (PSLRA) restored the SEC's ability to use "aiding and abetting" as a tool for enforcement of the securities [...] [...] confusing to me is that the Private Securities Litigation and Reform Act (PSLRA) restored the SEC's ability to use "aiding and abetting" as a tool for enforcement of the securities [...]

]]> By: re: The Auditors » Blog Archive » EY Settles SEC Charges Re: Bally’s Fraud-Lives To Audit Another Day http://retheauditors.com/2009/07/13/the-last-out-may-come-from-left-field/comment-page-1/#comment-66288 re: The Auditors » Blog Archive » EY Settles SEC Charges Re: Bally’s Fraud-Lives To Audit Another Day Fri, 18 Dec 2009 01:05:43 +0000 http://retheauditors.com/?p=2373#comment-66288 [...] independence issues recently and was supended from taking on new audit clients for six months.  How many strikes does a firm get?  Why no strong statement, sanction or other disciplinary action from the PCAOB [...] [...] independence issues recently and was supended from taking on new audit clients for six months.  How many strikes does a firm get?  Why no strong statement, sanction or other disciplinary action from the PCAOB [...]

]]> By: re: The Auditors » Blog Archive » @Going Concern “KPMG: That’s Just The Way We Roll” http://retheauditors.com/2009/07/13/the-last-out-may-come-from-left-field/comment-page-1/#comment-38667 re: The Auditors » Blog Archive » @Going Concern “KPMG: That’s Just The Way We Roll” Wed, 21 Oct 2009 18:45:58 +0000 http://retheauditors.com/?p=2373#comment-38667 [...] it weren’t bad enough to have so many subprime lawsuits hanging over their head, the Big 4 – well everyone but Deloitte for some very odd reason – also [...] [...] it weren’t bad enough to have so many subprime lawsuits hanging over their head, the Big 4 – well everyone but Deloitte for some very odd reason – also [...]

]]> By: Chicago Accountant http://retheauditors.com/2009/07/13/the-last-out-may-come-from-left-field/comment-page-1/#comment-8052 Chicago Accountant Wed, 15 Jul 2009 12:48:48 +0000 http://retheauditors.com/?p=2373#comment-8052 The litigation will take years and millions of dollars in legal fees. TF brings up a good point, a lot will end up in structured settlements, regardless of who really was at fault. However, I think the firms are going to fight most of these tooth and nail. My bet is BDO is going to fail or be severly impacted. The firm will either die or be a shell of its former self. The litigation will take years and millions of dollars in legal fees. TF brings up a good point, a lot will end up in structured settlements, regardless of who really was at fault. However, I think the firms are going to fight most of these tooth and nail.

My bet is BDO is going to fail or be severly impacted. The firm will either die or be a shell of its former self.

]]> By: Independent Accountant http://retheauditors.com/2009/07/13/the-last-out-may-come-from-left-field/comment-page-1/#comment-7665 Independent Accountant Tue, 14 Jul 2009 19:22:50 +0000 http://retheauditors.com/?p=2373#comment-7665 TF: That the SEC did or did not do anything, means nothing to me. If the plaintiffs' bar decides to take the entire AIG-GSG fiasco apart, it could be the biggest disaster in CPA history. The SEC has no credibility anymore. What did it do for ten years with Madoff? Nothing. TF:
That the SEC did or did not do anything, means nothing to me. If the plaintiffs’ bar decides to take the entire AIG-GSG fiasco apart, it could be the biggest disaster in CPA history. The SEC has no credibility anymore. What did it do for ten years with Madoff? Nothing.

]]> By: Terry Fox http://retheauditors.com/2009/07/13/the-last-out-may-come-from-left-field/comment-page-1/#comment-7624 Terry Fox Tue, 14 Jul 2009 13:59:22 +0000 http://retheauditors.com/?p=2373#comment-7624 I don't think any of the firms will fail or are close to failing. One should remember that Anderson might very well have survived Enron and Worldcom if it were not for the criminal prosecution (which the government would never repeat). These firms are resilient and it is rarely in the plaintiffs interest to destroy the defendant. They want them alive to earn money for structured settlements. AIG is a very unlikely candidate to create threateningly large liabilities since the SEC has found no need to restate any of their financial statements. The bigger issue is business model and what the global regulators will do with the auditing profession. I don’t think any of the firms will fail or are close to failing. One should remember that Anderson might very well have survived Enron and Worldcom if it were not for the criminal prosecution (which the government would never repeat). These firms are resilient and it is rarely in the plaintiffs interest to destroy the defendant. They want them alive to earn money for structured settlements. AIG is a very unlikely candidate to create threateningly large liabilities since the SEC has found no need to restate any of their financial statements.

The bigger issue is business model and what the global regulators will do with the auditing profession.

]]> By: Independent Accountant http://retheauditors.com/2009/07/13/the-last-out-may-come-from-left-field/comment-page-1/#comment-7598 Independent Accountant Tue, 14 Jul 2009 02:20:17 +0000 http://retheauditors.com/?p=2373#comment-7598 Here's my "left field nominee", PWC at AIG! AIG was a Goldman counterparty. Goldman is audited by PWC. PWC saw both sides of all CDSs between AIG and Goldman. AIG's CDSs were woefully overvalued. AIG got $173 billion in bailout money of which $13 billion went to Goldman. Are we to believe PWC is so stupid it couldn't see the CDSs were a zero-sum game? Even I don't think PWC is that stupid. Will it happen? Stay tuned? Satyam, though a disaster is a fly on an elephant's back compared to the AIG disaster. I await other nominees. Here’s my “left field nominee”, PWC at AIG! AIG was a Goldman counterparty. Goldman is audited by PWC. PWC saw both sides of all CDSs between AIG and Goldman. AIG’s CDSs were woefully overvalued. AIG got $173 billion in bailout money of which $13 billion went to Goldman. Are we to believe PWC is so stupid it couldn’t see the CDSs were a zero-sum game? Even I don’t think PWC is that stupid. Will it happen? Stay tuned? Satyam, though a disaster is a fly on an elephant’s back compared to the AIG disaster. I await other nominees.

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