• Archive for the ‘Audit Quality’ Category

    Why Is The SEC Pursuing Deloitte Shanghai? Looks Like It’s Personal

    By • May 10th, 2012

    The Securities and Exchange Commission is rattling a dull sabre again towards Shanghai-based Deloitte Touche Tohmatsu CPA Ltd. for its refusal to provide the agency with audit work papers related to another China-based company under investigation for potential accounting fraud against U.S. investors. It looks to me like it’s personal rather than productive.



    Groupon: You Must Have Fallen From The Sky

    By • Apr 7th, 2012

    I expect the auditors to earn their fees by looking out for investors. But maybe that’s just pie in the sky.



    McKenna Now Writing At American Banker

    By • Sep 16th, 2011

    I’m writing now for American Banker. My first column covers a new appointment at Deloitte and how this might affect the firm’s clients in the mutual funds industry.



    New @Forbes: Bank of America Plays Hide And Seek Using Fannie Mae

    By • Aug 11th, 2011

    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.



    New at Forbes: My Comments On The Latest Sanctions Against Ernst & Young

    By • Aug 3rd, 2011

    As if Ernst & Young didn’t have enough to worry about now they’ve got a public airing of some dirty laundry by the PCAOB.



    Ernst & Young Lehman Litigation: It’s No Victory If You’re Going To Trial

    By • Jul 29th, 2011

    It wasn’t even a verdict. Just a decision by New York Federal Court Judge Lewis Kaplan in one of the Lehman failure cases Ernst & Young is fighting. A decision to allow substantially all of the allegations against Lehman executives and at least one of the allegations against Ernst & Young to move forward to discovery and trial. That is, if there’s not a settlement first.



    Going In Circles: A Few Remarks On Audit Reform

    By • Jul 14th, 2011

    Don’t get me wrong.

    I’m thrilled that there’s a lot of traffic in my lane. What I mean is, it’s good for everyone that we’re talking about these issues and that someone other than me and a few other broken records are playing these tunes.



    Making Mortgage Fraudsters Pay…But Via Private Lawsuits (And Some Attorneys General) Not Law Enforcement

    By • Jul 5th, 2011

    Thank goodness for the plaintiffs’ bar and class action lawsuits. And state attorneys general. Without them, there’d be very little justice yet – or compensation – for any of the mortgage-related fraud perpetrated during the real estate bubble.



    Not Over Until It’s Over: Price Waterhouse India Settles Satyam

    By • Apr 11th, 2011

    It’s the potential for sudden conflagrations in developing countries that keeps the global audit firms – PwC in this case – up at night. The legal quagmires in developed countries are messy, too. PwC may want to put the Satyam scandal behind them but, unfortunately, I fear there’s still much more pain for the firm to come.



    @Forbes “Auditors Abandon Investors On Liability Limits”

    By • Mar 13th, 2011

    Tammy Whitehouse over at Compliance Week does a thorough job on the largest audit firms and their fear of catastophic litigation.  Yes, they’re admitting it – Tammy says they’re pleading with legislators – and fighting any legislative urges to open more avenues for lawyers and their clients to sue them. The Dodd-Frank Act gave the Securities […]