Archive for the ‘Audit Quality’ Category

The SEC vs. The PCAOB and Jim Doty: Impasse or Détente?

By • Jan 18th, 2016

Jim Doty’s term as chairman of the PCAOB, the audit regulator, expired in October. All summer since I arrived in Washington D.C., leading up to that date and since, there’s been speculation about whether or not SEC Chairwoman Mary Jo White would reappoint him to the job.



Best Case Yet For Publishing Audit Partner Names: Grant Thornton’s Koeppel

By • Dec 14th, 2015

The PCAOB will vote on final rule based on its proposal on Tuesday Dec 15. If audit partner names were published in the audit report, or anywhere, the public, audit committees, investors and journalists could stop lousy auditors in their tracks. Melissa Koeppel of Grant Thornton is the best case yet for making audit partner names and their engagement history, disciplinary history, and litigation history public.



PCAOB’s Franzel Speaks to AAA; Are Auditors’ ICFR Opinions Just “Busy-Work”?

By • Aug 9th, 2015

Auditor opinions on ICFR are not only not being done well, they are not producing warnings for investors and regulators that a material error and restatement is likely. Worse than that, when auditors get them wrong they whitewash their mistakes.



Deloitte US First Female CEO; There’s More We Don’t Know

By • Mar 2nd, 2015

Wouldn’t it be nice if investors and other interested parties could look up new Deloitte US CEO Cathy Engelbert in a public and easily accessible registry and find out about all the audit clients where she has been a lead partner or a Quality Control partner? Has she ever been named in a lawsuit or been sanctioned? Let’s hope not.



Piling Up For PwC

By • Nov 18th, 2014

Update: The PCAOB is investigating PwC for its tax avoidance advice to Caterpillar, the Wall Street Journal is reporting. One down, more than 100+ PwC audit clients advised via Luxembourg to go…



Update: The Shoemaker’s Children… The Big Four And Their Own Broker-Dealers

By • Oct 27th, 2014

Did you know that each of the Big Four audit firms and some of the next tier also run SEC-registered broker-dealers? You’ll never guess who audits them.



Winning! PwC Argues Both Sides Of The Partner Naming Debate

By • Dec 19th, 2013

How do the audit firms keep winning the war while losing battles left and right? They use the law and the courts to delay, deter and distract from transparency by settling, and sealing what they can, before the public can find out what silly arguments they often make in their defense.



Latest Way Big Four Trying To Dodge Liability

By • Sep 24th, 2013

Ratings agencies and Big Four auditors don’t think they should be held accountable for their respective products. Here are some of the crazy ways they argue their case.



On Herbalife And The Slow Death Of Value Investing

By • Aug 3rd, 2013

Big egos making shares move by waving their wands. That makes picking stocks based on fundamental analysis more than slightly anachronistic. A bit about Herbalife…



The Problem Of An Audit Firm Market Exit: New Research From University of Chicago Booth School of Business

By • Jul 29th, 2013

A post at University of Chicago Booth School of Business Capital Ideas blog discusses new research from Joseph Gerakos and Chad Syversen on the dangers of industry concentration in the event of a market exit by one of the large audit firms. For example, what if PwC, which audits five of the top ten global pharma companies ran into trouble amid the ongoing investigations of bribery of Chinese officials, in particular by PwC audit client GlaxoSmithKline and a few of its other audit clients?