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

    Unaudited! Not Just A China Problem So How Do We Address It?

    By • Dec 20th, 2012

    It’s sexier for the media to focus on audit failures by inscrutable China-based Big Four audit firms than the general failure of auditors all over the world to protect investors from fraud.

    Auditors Diss US Regulators Regarding China

    By • Dec 4th, 2012

    I’ve been watching the developments for a while now between the global audit firms, their clients, the regulators on both sides, and investors – especially the shorts – who have been raising the issues of Chinese frauds. I’ve written quite a bit about these issue. If you’re playing catch up, this list of posts is a good place to start.

    Casino Industry Suffering From China Denial Syndrome

    By • Oct 8th, 2012

    When you think about the big Las Vegas casinos, you should be thinking about Macau instead. The casino industry is a good example of the U.S. based multinationals that would suffer from any bold moves by regulators against the Chinese member firms of the Big Four audit networks.

    What The SEC And PCAOB Fail To Acknowledge About Chinese Fraud

    By • Jul 9th, 2012

    There have been significant developments on the issue of Chinese frauds and in the efforts by the SEC and the PCAOB to investigate and bring responsible parties to justice, including the auditors of the companies under investigation.

    But none of these developments will have any significant impact on the bigger problems facing China and investment in China.

    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.

    How Do You Hide A Multibillion Dollar Loss? Accounting For The Olympus Fraud

    By • Jan 2nd, 2012

    I asked CPA and blogger Jim Ulvog to write a guest post on the Olympus scandal because he was the only one to explain it to me from an accounting perspective. An investigative report prepared by auditor Ernst & Young Shin Nihon – yes, the one that missed the fraud – is a scathing indictment of the company and others potentially complicit in the multi-year subterfuge.

    @Forbes: Judge Slams Centro Directors But PwC Will Answer Too

    By • Aug 18th, 2011

    I wrote this post about a month ago for Forbes.com and my column, “Accounting Watchdog” on a very important legal decision related to a real estate company, Centro, in Australia. Centro’s auditors were PwC.

    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: Chinese Reverse Mergers: The Auditor Angle

    By • Mar 16th, 2011

    My Forbes column today is about the Chinese reverse merger market and recent reports of potential frauds – plural. I waited for the inevitable case that implicated a Big 4 audit firm. When it came I got two for the price of one and a bonus – a great new research paper from the PCAOB on the Chinese reverse merger phenomenon.

    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.