Piling Up For PwC
By Francine • Nov 18th, 2014Update: 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…
Archive for the ‘Liability Caps’ Category
Winning! PwC Argues Both Sides Of The Partner Naming Debate
By Francine • Dec 19th, 2013How 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.
Naming Them: Why Markets Deserve To Know Audit Partner Names And More
By Francine • Nov 24th, 2013We now know more about what the firms have been hiding. The global capital markets, not just current shareholders, need full disclosure of the engagement teams on all public issuers over time, and in a way that is easily accessible.
Latest Way Big Four Trying To Dodge Liability
By Francine • Sep 24th, 2013Ratings 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.
The Problem Of An Audit Firm Market Exit: New Research From University of Chicago Booth School of Business
By Francine • Jul 29th, 2013A 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?
New at Forbes: My Comments On The Latest Sanctions Against Ernst & Young
By Francine • Aug 3rd, 2011As if Ernst & Young didn’t have enough to worry about now they’ve got a public airing of some dirty laundry by the PCAOB.
Ernst & Young Lehman Litigation: It’s No Victory If You’re Going To Trial
By Francine • Jul 29th, 2011It wasn’t even a verdict. Just a decision by New York Federal Court Judge Lewis Kaplan in one of the Lehman failure cases Ernst & Young is fighting. A decision to allow substantially all of the allegations against Lehman executives and at least one of the allegations against Ernst & Young to move forward to discovery and trial. That is, if there’s not a settlement first.
Going In Circles: A Few Remarks On Audit Reform
By Francine • Jul 14th, 2011Don’t get me wrong.
I’m thrilled that there’s a lot of traffic in my lane. What I mean is, it’s good for everyone that we’re talking about these issues and that someone other than me and a few other broken records are playing these tunes.
@Forbes “Auditors Abandon Investors On Liability Limits”
By Francine • Mar 13th, 2011Tammy Whitehouse over at Compliance Week does a thorough job on the largest audit firms and their fear of catastophic litigation. Yes, they’re admitting it – Tammy says they’re pleading with legislators – and fighting any legislative urges to open more avenues for lawyers and their clients to sue them. The Dodd-Frank Act gave the Securities […]
Auditing Standard 5: How Now, Brown Cow?
By Francine • Oct 3rd, 2009On September 24, 2009 the Public Company Accounting Oversight Board issued a report on the first year of implementation of Auditing Standard No. 5. There’s something negative to say about each of the components reviewed.
Francine McKenna (@retheauditors) has more than twenty-five years of experience in consulting and professional services including tenure at two Big 4 firms, both in the US and abroad. Look for my column, 