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

    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.



    Pershing Square’s Bill Ackman Tells PwC, “Herbalife Is Your Problem Now”

    By • Sep 29th, 2013

    On September 11 Bill Ackman went beyond his ongoing accusation that Herbalife is pyramid scheme and sent a 52-page letter to PwC warning the firm it is exposed to enormous liability if it signs off on Herbalife audit opinions and Qs without a full investigation of several accounting, tax and bribery allegations. Ackman used my work to bolster his case to PwC.



    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.



    Darning Socks: Audit Report Proposal Promises More Holes Down The Road

    By • Sep 10th, 2013

    Don’t get too excited. The same sticky issues come up every time, get tossed around and then get dropped until the next scandal or crisis provides an impetus for a discussion again.



    Broker-Dealer Audits Still Badly Broken

    By • Sep 3rd, 2013

    The PCAOB’s second “progress” report on broker-dealer audits found deficiencies in all of the audit firms inspected and in 57 of the 60 audits inspected. That’s not much progress.



    In Pari Delicto: Can A Law Make It Go Away?

    By • Jul 27th, 2013

    Pete Brush at Law.com did a story last week about a story about in pari delicto, the adverse interest exception, and holding third-parties like auditors liable for fraud in bankruptcy cases. I was quoted.



    The Indictment of S.A.C. Capital Advisors: Where Was The Auditor?

    By • Jul 26th, 2013

    Unfortunately, regulatory supervision of investment advisors, broker-dealers, and their auditors leaves a lot to be desired. PwC missed years of illegal activity at S.A.C. Capital Advisors. If only we could say that’s the first time.



    Who Is The PwC Partner Responsible For MF Global? Someone With A Lot of Baggage

    By • Jun 14th, 2013

    It’s important for the integrity of the capital markets to assign individual responsibility for audit failures. We need to see the key partners’ names and their career histories because recidivist partners are hiding behind the firms which are very good at dodging general liability.



    My Latest Forbes Magazine Article: “The Madoff of Munis”

    By • Jun 11th, 2013

    Taxpayers are getting killed. I think municipal bondholders are next.