• Archive for the ‘Audit Firm Management’ Category

    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.



    Not That Satisfying: SEC Slams KPMG For Independence Violations

    By • Jan 28th, 2014

    It’s been almost three years since I first broke the story of KPMG’s loaned tax staff arrangement with audit client GE. On January 24 the Securities and Exchange Commission (SEC) announced an $8.2 million settlement with KPMG over violations of auditor-independence rules. The wheels of justice turn very slowly. But the GE case was not one of the three cited as the subject of the enforcement action.



    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.



    Naming Them: Why Markets Deserve To Know Audit Partner Names And More

    By • Nov 24th, 2013

    We 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.



    Five Auditor Independence Issues PCAOB SAG Not Yet Addressing

    By • Nov 11th, 2013

    There are five big auditor independence issues that space prevented a full discussion of yesterday and that are not on the agenda of the PCAOB SAG meeting this week. My hope is that regulators, policy makers and other interested parties will start talking about these issues, too, while I am in DC this week.



    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?



    The Economic Significance of Accounting and the Key Role of Integrity in the Profession

    By • Jul 14th, 2013

    Robert Ricketts, Texas Tech University and Rawls College of Business accounting department chairman, invited me to speak at his school last April. Here’s a link to the presentation, an excerpt and some additional comments on recent news.



    How KPMG Explains Scott London To The Accounting Professors

    By • Apr 29th, 2013

    Here’s how KPMG Chairman John Veihmeyer explained Scott London’s inside trading and the firm’s response to accounting professors, an important stop in the audit industry supply chain.