Archive for the ‘Audit Firm Management’ Category

Scott London Subverted Sarbanes-Oxley: Big Four Mock Audit Partner Rotation

By • Apr 22nd, 2013

I noticed a small little thing in one of the first stories about Scott London. As I tried to research and write about it, I waited for someone else to pick up on it. (No one else did.) Scott London seems to have subverted the intent of Sarbanes-Oxley Section 203 that requires lead engagement partner rotation off engagements to promote objectivity, independence and professional skepticism.



HP and Autonomy: Material Writedown With A Side Of Serious Fraud

By • Nov 20th, 2012

HP announced today it is writing down more than $5 billion, or almost half of the Autonomy acquisition price, because of “serious accounting improprieties, misrepresentation and disclosure failures” by Autonomy former executives. Deloitte was the auditor of Autonomy, a UK software firm acquired by HP in 2011 for $11.1 billion.



Four Years After Madoff, Audits and Auditors of Broker-Dealers Still Lousy

By • Aug 30th, 2012

How much lower does investor confidence have to go? How many more billions do customers have to lose before someone steps up?



Big Four Auditors and Jury Trials: Not In The U.S.

By • Jun 19th, 2012

You have to go outside of the US to see a trial of a Big Four audit firm to know what I’m talking about. Australia’s Centro case against PwC or Canada’s Nortel case where Deloitte partners testified recently tell you everything you need to know about why the Big Four will settle every time. Rather than have a jury and the public hear and see the pathetic state of the audit profession, its inability to stop executives who want to cheat, and its unwillingness to acknowledge liability as a firm when it screws up, the firms will reach into their seemingly bottomless pockets and pay up.



Why Is The SEC Pursuing Deloitte Shanghai? Looks Like It’s Personal

By • May 10th, 2012

The Securities and Exchange Commission is rattling a dull sabre again towards Shanghai-based Deloitte Touche Tohmatsu CPA Ltd. for its refusal to provide the agency with audit work papers related to another China-based company under investigation for potential accounting fraud against U.S. investors. It looks to me like it’s personal rather than productive.



Groupon: You Must Have Fallen From The Sky

By • Apr 7th, 2012

I expect the auditors to earn their fees by looking out for investors. But maybe that’s just pie in the sky.



PCAOB Disclosure Of Deloitte Private Report: A Regulatory Inflection Point?

By • Oct 27th, 2011

My American Banker column on Tuesday focused on the risks to banks, their audit committees, and shareholders of an auditor who blows off its regulator. Deloitte’s ongoing conflict with the PCAOB poses the risk of undue scrutiny by other regulators and unwanted publicity to all its clients.



KPMG May Answer For GE Tax Work

By • Sep 21st, 2011

Going Concern reported yesterday that KPMG professionals have been ordered to preserve all correspondence and documentation related to the tax “loaned staff” assignment it has with long-time client GE. That means someone – the SEC or PCAOB – is investigating.



McKenna Now Writing At American Banker

By • Sep 16th, 2011

I’m writing now for American Banker. My first column covers a new appointment at Deloitte and how this might affect the firm’s clients in the mutual funds industry.



Dear PCAOB: My Response To Your Request For Comments

By • Aug 15th, 2011

The PCAOB will hold an open meeting on Tuesday, August 16, to discuss a concept release soliciting public comments on ways that auditor independence, objectivity, and professional skepticism could be enhanced, including mandatory audit firm rotation. They are also soliciting comments on their Concept Release for changes to the auditor’s reporting model. I’ve written on these topics many, many times.