Archive for the ‘KPMG’ Category

Auditor Independence: Will “Crisis” Cause Compromise?

By Francine • Aug 13th, 2009

Given the pressures on costs and the longstanding ties some finance, audit, and accounting executives have with the accounting firms, it is not surprising that the weakening of the independence commitment may come from the companies themselves. What’s the downside for them? The potential for scrutiny by corporate governance experts and journalists? You can’t argue with a recession. And in the event of an accounting scandal or restatement, plaintiff’s lawyers will have an uphill battle to penetrate the impenetrable auditor liability shields and caps.

What’s lost in all of this discussion of efficiency and cost cutting?

Independence protects shareholder’s interests.


It’s A Race To The Finish – But There Are No Winners

By Francine • May 11th, 2009

Not so long ago, Dennis Howlett and I went public with a bet:

Which Big 4 audit firm is the next to fail?

Dennis believes that I’m betting on PwC as next to fail. I don’t honestly remember committing to that, but I’m willing to go with it for the sake of argument. This is in spite of the fact that the other Big 4 have plenty to worry about and the next tier firms are in no way ready for prime time.


KPMG Has A $1 Billion New Century Problem

By Francine • Apr 2nd, 2009

KPMG is being sued for $1bn by the liquidators of New Century, the collapsed subprime lender, in the first big case against an auditor arising from the current financial crisis. If the New Century trustee is successful, “it may embolden others to look more closely at the possibility of bringing [accounting] firms to some level of culpability for the things that happened,” that led to the credit crisis, Francine McKenna, president of McKenna Partners LLC, a corporate-governance consultancy, said in an interview in the Wall Street Journal.


Looking Out For Me, Myself, And I

By Francine • Mar 15th, 2009

There is at least one person who doesn’t have to worry about having a good job, at KPMG no less. Thomas Ray was the Chief Auditor and Director of Professional Standards for the PCAOB.

According to WebCPA:

Ray is joining KPMG as a partner in the firm’s department of professional practice in New York.


Jack Welch and GE

By Francine • Jan 7th, 2009

Thank you very much for maintaining a cynical tone during your feature on Mr. Welch and the new Mrs. Welch. In my mind, and it is a very personal opinion, Mr. Welch personifies everything that is wrong with US business.


If It’s Not One Thing, It’s Another – Auditors Getting Sued Over Madoff

By Francine • Dec 18th, 2008

The “victims” of the Bernie Madoff scandal are not taking their losses laying down. Why are so many suits suddenly being brought against the auditors of the funds that invested on behalf of their clients in the Madoff funds?


And Now For Some KPMG Good News

By Francine • Dec 8th, 2008

You may question my choice of title for this post. After all, it describes the end of the tax shelter prosecution of the KPMG 13. And it was former KPMG employees, not current KPMG employees or partners who cheered when federal Judge Lewis Kaplan dismissed charges yesterday against them,  13 former employees of the accounting [...]


Latest Updates: My Clients Are Failing, My Clients Are Failing

By Francine • Oct 7th, 2008

Update:
Chicago’s John “Dr. J.” Najarian co-founder of OptionMONSTER on the need for transparency when the assets bought by the US government are eventually sold.
On YouTube.

Part 2 from Jon Najarian is here.

 
I have been updating this information throughout the weekend as other banks failed and other deals have been done.
A summary of “the mother of all [...]


"Rogue" Partners At KPMG Christchurch

By Francine • Jul 15th, 2008

Here in the US, we are accustomed to the concept of a national practice  for our Big 4 firms.  Although each of the local offices, in each city, in each state has a Managing Partner and local partners, the firms are rarely separate legal entities.  A partner is a partner of the National firm, not [...]


And The IRS Has What Leverage Over The Firms?

By Francine • Jul 7th, 2008

I laughed out loud when a Google Alert pointed me to the FT article excerpted below. 

I find this solicitation by the US Internal Revenue Service quite ironic given that four of the six firms mentioned have had serious, and I mean serious, issues with the IRS related to their aiding and abetting the development of [...]


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