• Archive for the ‘The Big 4 And Globalization’ Category

    All Points Bulletin: Auditor Litigation Spans The Globe

    By • Mar 9th, 2011

    Let’s consider for one moment that the US firms are not the center of the universe for the global audit franchise. Although US revenues are significant, profits and growth are not necessarily stellar compared to the potential in other geographies. So the firms will plow foreign fields instead.



    Satyam’s Internal Auditor: All Roar, No Bite

    By • Feb 14th, 2011

    In December of 2009, India’s Central Bureau of Investigation (CBI) arrested Mahindra Satyam’s internal audit head V S Prabhakar Gupta for his alleged involvement in the Satyam fraud.



    Auditors Under Pressure In The UK: Or Are They?

    By • Jan 25th, 2011

    The UK accounting firms’ response to the “pressure” on the industry post-crisis is sharp, quick, and on message. But the “pressure” itself feels like a sinister strategy orchestrated by the audit firms to force legislators to grant their wishes under the mistaken assumption they’re “regulating” the industry.
    Let me break it down for you.



    Dear PCAOB Board: Your Job Is To Serve And Protect Investors

    By • Jan 16th, 2011

    It’s time for the PCAOB Board to think about how they might respond when the audit firms are not going to be so pleased as punch. There’s much for them to address. I’ll be talking about some of those changes and improvements in future posts. But, the most important role of the PCAOB is the inspections process. Let’s take a look at how well that’s going.



    Big 4 Bombshell: “We Didn’t Fail Banks Because They Were Getting A Bailout”

    By • Nov 28th, 2010

    The Economic Affairs Committee of the House of Lords questioned representatives of the four largest audit firms on the issue of “going concern” opinions during the financial crisis. In particular, why were there none for the banks that failed, were bailed out, or were nationalized? The auditors admitted that they did not issue “going concern” opinions because they were told by government officials, confidentially, that the banks would be bailed out.



    Systemic Risk! Dominance! Momentum! Auditors In Crisis. Again.

    By • Oct 15th, 2010

    Politicians are again trotting out the same old ideas and suggestions for audit industry reform. Does the UK also pop in new politicians every four years as we do here in the United States such that we get a fresh crop of potato heads every term, fresh from the field, with nary a clue about the history, legacy, machinations and pervasive influence of the largest global accounting firms?



    Yukos Slicks Accuse PricewaterhouseCoopers Of Succumbing To Kremlin Pressure

    By • Sep 10th, 2010

    There’s quite a bit of bad news coming out of Russia about PricewaterhouseCoopers and their client Yukos. Former Yukos chief Mikhail Khodorkovsky and his business partner Platon Lebedev stand co-accused in a new trial brought by prosecutors intent on preventing their scheduled release from prison in 2011. Khodorkovsky and Lebedev have decided to target PwC in their defense.



    Auditors Say Jump… New “Appeals” Process Will Impede Timely PCAOB Inspection Reports

    By • Aug 3rd, 2010

    The SEC did not issue a press release for this rule. Chairman Shapiro did not mention it in her July 27 speech that discussed actions the SEC was taking in response to the passage of the financial regulatory reform bill. It was not an explicit requirement of the Supreme Court decision regarding the PCAOB.
    So where did it come from? Why is it necessary?



    PwC “Restructures” Indian Consulting Business: Will It Be Enough To Preserve US and UK Interests?

    By • Jul 12th, 2010

    If any doubts remained that PricewaterhouseCoopers International Limited, the international global network “coordinating” firm, does the bidding of its largest and most powerful member firms – primarily PwC US and PwC UK – the latest “restructuring” in India should dispel them. PwC US and PwC UK want to be closer to their money.



    Bigger, Stronger, Faster: The PCAOB After The Supreme Court Ruling

    By • Jun 26th, 2010

    The Supreme Court will hand down their decision on Free Enterprise Fund v. PCAOB before on June 28th. Congressional action may be necessary to reestablish the PCAOB or a comparable regulatory authority within the SEC, if we want to continue independent regulation of the audit firms. I have some recommendations for a new PCOAB law.