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My latest column is up at American Banker, “Are Cozy Ties Muzzling S&P on MF Global Downgrade?” You may recall the last time I wrote about MF Global. Something about a “rogue” trader.
This post was originally published three years ago on September 17, 2008. Given everything that is going on – ongoing investigation of EY’s role in Lehman collapse, more lawsuits against the Big 4 audit firms for crisis failures, disclosure of Deloitte’s failings as an auditor as far back as 2006 – I thought it may [...]
The next time something goes terribly wrong at a Berkshire Hathaway company, there’s a strong possibility no one will hear about it. Warren Buffett and Charlie Munger won’t be held directly responsible either. That’s the beauty of Buffett’s version of a conglomerate corporate structure, decentralized to such an obscene level such that its minimalism is brandished as a feature not a bug.
Warren Buffett’s investment in Bank of America was big news yesterday and it still reverberating. Forget the “Buffett effect.” I am now enjoying the “front page of Forbes.com” effect. Within an hour of posting it yesterday the story had over 3,000 page views. It is now my number one highest traffic post for my column there.
I was recently interviewed for the radio show, Background Briefing, and the segment, “Auditing the Auditors,” that aired Sunday August 14th in Australia. The transcript and a podcast are available. I get the last word in response to a defense of the auditors by John Hempton re: the Chinese reverse merger scandals.
The PCAOB will hold an open meeting on Tuesday, August 16, to discuss a concept release soliciting public comments on ways that auditor independence, objectivity, and professional skepticism could be enhanced, including mandatory audit firm rotation. They are also soliciting comments on their Concept Release for changes to the auditor’s reporting model. I’ve written on these topics many, many times.
Making the non-obvious connections between the audit firms and their clients, between the clients and each other, and between the firms and each other is getting to be like shooting fish in a barrel.
Ryan Chittum at the Columbia Journalism Review said some very nice things about my piece in Forbes on Roger Lowenstein and his “Wall Street: Not Guilty” piece.
Ok, so it’s not a quote. And they don’t even mention my name. But indulge me a minute. I’m thrilled to have been linked to by American Lawyer’s Amy Kolz in the AmLawDaily Blog regarding the Berkshire Hathaway investigation of the Sokol affair.
I was quoted on May 2 in an article in American Banker by Alex Ulam entitled, “Why Second-Lien Loans Remain A Worry”. My quote focused on disclosures and transparency – for the loans and the reserves for losses. It’s a subject I’ve written about extensively.
 Francine McKenna (@retheauditors) has more than twenty-five years of experience in consulting and professional services including tenure at two Big 4 firms, both in the US and abroad. Look for my column, "Accounting Watchdog" at Forbes.com and "Accountable" at American Banker. For more information, click "About" at the bottom of this page. Your firm can sponsor this specialized news site. For more information contact Francine McKenna, fmckenna@mckennapartners.com |
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