• Archive for the ‘The Case Against The Auditors’ Category

    All The Auditors Are Above Average: Jay Hanson Allergic To “Audit Failure”

    By • Mar 26th, 2014

    Should audit and auditor failure be solely defined by identified material misstatements that result in restatements, and internal control failures? I don’t think so but Jay Hanson, PCAOB Board member, said so recently.



    PwC Faces A Trial For SemGroup Audit And Its Defense Is Predictably Slick

    By • Feb 18th, 2014

    PwC is scheduled to go to trial for malpractice related to the bankruptcy of SemGroup in August, almost six years later. The SemGroup Litigation Trust, pursuing claims on behalf of the company and its creditors, alleges PwC did a terrible audit. But it’s worse than just lousy auditing, especially if a trial exposes the truth of PwC’s disingenuous defenses.



    VC Horowitz Implicates Auditor PwC In Story About Dodging Backdating Bullet

    By • Feb 13th, 2014

    Imagine my surprise when Ben Horowitz, one half of the venture capital team of Andreessen Horowitz, wrote a blog post about dodging a stock option backdating jail term that also implicates PwC.



    Next Up On The “Operation Broken Gate” Agenda? Could Be PwC and Thomson Reuters

    By • Feb 3rd, 2014

    Now that the Securities and Exchange Commission has crossed KPMG’s independence violations off its to-do list, the agency can move on to the rest of the ones I’ve already identified for them. How about PwC and its business relationships and myriad services provided to audit client Thomson Reuters?



    One Way Or Another: The SEC Versus The Chinese Big Four Firms

    By • Jan 25th, 2014

    SEC Administrative Judge Cameron Elliot issued a blistering decision last week in a long-running dispute over regulator access to auditor work papers in fraud investigations. The judge banned the Chinese Big Four firms from auditing US issuers for six months and lambasted them for voluntarily putting their firms “between a rock and a hard place.” The decision is not yet final but the enormous impact is already being felt worldwide.



    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.



    The “Chilling Effect”: No One Important Wants The Auditor’s Opinion

    By • Nov 13th, 2013

    Are auditors too cozy with management and the Audit Committee? Unfortunately, that the way they all seem to like it. Investors and the capital markets suffer.



    Only Money—Deloitte Pays Another Fine And Then Moves On

    By • Oct 23rd, 2013

    Deloitte has been caught thumbing its nose at regulators again. Deloitte is the best example in the Big Four of how a large consulting business corrupts an audit firm.



    $99 Million Buys EY Ticket Out Of Private Lehman Litigation, Finally

    By • Oct 21st, 2013

    Last defendant standing. Not an enviable place for EY in the case, In re Lehman Brothers Securities and Erisa Litigation. Holding out until the end has now cost EY $99 million, more than Lehman officers and directors.