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

    Huron Consulting, Its Executives and PwC; All’s Well That Ends Well

    By • Jul 23rd, 2012

    The Huron Consulting case is a great one if you would like to see examples of almost everything that’s wrong with the audit industry, the regulation of the industry and “reforms” like Sarbanes-Oxley.

    A Response to Reuters on Internal Audit and Banks

    By • Jun 29th, 2012

    Reuters has a story out today entitled, “Regulators tighten up bank in-house checks.”

    Unfortunately it does nothing, in fact it distorts, the role of internal audit, external audit and the Audit Committee of the Board of Directors in a bank.

    I’m In Congress! Foreclosure Review Work Cited By Congressman

    By • Apr 13th, 2012

    A column I wrote for American Banker on March 5, 2012, “What Little We Know About Foreclosure Reviews Is Troubling”, was mentioned during the recent House Financial Services Subcommittee hearing on issues facing the accounting and auditing industry.

    Auditor Rotation and Banks: If It Makes You Happy…

    By • Mar 26th, 2012

    My column today at American Banker is about the PCAOB’s auditor rotation and auditor independence concept release and its impact on banks. My favorite lines are…

    KPMG Nixes GE Loaned Tax Staff Engagement

    By • Jan 26th, 2012

    KPMG will no longer loan tax professionals to GE during busy season, according to a source close to the situation. KPMG was billing an extra $8-10 million, over and above the audit each year, for the service. Loaning, assigning, or “seconding” tax or any “bookkeeping” staff to an audit client is prohibited by the Sarbanes-Oxley Act […]

    Update: Mortgage Servicer Foreclosure Review Process

    By • Dec 27th, 2011

    I was the first to report on December 6 the irony of Deloitte having been selected by, of all banks, JP Morgan Chase. The high likelihood of a conflict between the bank and the audit firm, and possibly the individual Deloitte partners assigned to the JP Morgan Chase review, should have been obvious to anyone at the OCC. It turns out I was right.

    Servicing The Mortgage Industry: An Update

    By • Nov 25th, 2011

    My October 6 column for American Banker was cited by Congresswoman Maxine Waters and others to support the strong management of conflicts of interest by the OCC in the mortgage servicer reviews as well as full disclosure of vendors and their engagement letters with the banks. On November 22, 2011, the Office of the Comptroller of the Currency (OCC) disclosed the names of the consultants, their clients and redacted versions of the engagement letters between the banks and consultants.

    Closing In On The Fix For Mortgage Servicer Abuses

    By • Oct 7th, 2011

    My latest column, “Banks Hire Friendlies for ‘Independent’ Foreclosure Reviews”, is on line now at American Banker’s BankThink.

    KPMG May Answer For GE Tax Work

    By • Sep 21st, 2011

    Going Concern reported yesterday that KPMG professionals have been ordered to preserve all correspondence and documentation related to the tax “loaned staff” assignment it has with long-time client GE. That means someone – the SEC or PCAOB – is investigating.

    The State Of Sarbanes-Oxley Compliance: The Protiviti Survey Results

    By • Jun 26th, 2011

    The results of Protiviti’s survey of Sarbanes-Oxley compliance are out. I like seeing viable alternatives to the Big Four audit firms.