• Archive for the ‘Sarbanes-Oxley’ Category

    Big Four Auditors and Jury Trials: Not In The U.S.

    By • Jun 19th, 2012

    You have to go outside of the US to see a trial of a Big Four audit firm to know what I’m talking about. Australia’s Centro case against PwC or Canada’s Nortel case where Deloitte partners testified recently tell you everything you need to know about why the Big Four will settle every time. Rather than have a jury and the public hear and see the pathetic state of the audit profession, its inability to stop executives who want to cheat, and its unwillingness to acknowledge liability as a firm when it screws up, the firms will reach into their seemingly bottomless pockets and pay up.

    Are Auditors Reporting Fraud And Illegal Acts? The SEC Knows But Isn’t Telling

    By • Feb 22nd, 2012

    There are still many unanswered questions about how and why the financial crisis frauds occurred. New frauds, such as the Chinese reverse merger frauds, took advantage of a public listing loophole that the SEC and auditors missed. All these investor losses occurred under the supposedly watchful eyes of auditors, who are paid dearly to protect shareholders but in many cases are either complicit, incompetent, or both.

    McKenna at American Accounting Association Public Interest Conference

    By • Apr 18th, 2011

    Here’s the speech and slides I used for the AAA Public Interest Conference on April 1-2 and Top X list of possible research topics for accounting and audit academics interested in public policy.

    I’ll be at the American Accounting Association Midwest Conference in Columbus, Ohio May 12-14. I’m on a panel to discuss the audit firm model and will take questions at a separate session. Hope to see you there.

    If you would like me to speak for your group, please email me at fmckenna@mckennapartners.com

    Sarbanes-Oxley For Everyone: To Be Or Not To Be? (With Postscript)

    By • Nov 24th, 2009

    Sarbanes-Oxley (SOx) made law what is best practice for all public companies or companies that issue public debt. That includes “smaller” companies.

    Auditor Independence: Will “Crisis” Cause Compromise?

    By • Aug 13th, 2009

    Given the pressures on costs and the longstanding ties some finance, audit, and accounting executives have with the accounting firms, it is not surprising that the weakening of the independence commitment may come from the companies themselves. What’s the downside for them? The potential for scrutiny by corporate governance experts and journalists? You can’t argue with a recession. And in the event of an accounting scandal or restatement, plaintiff’s lawyers will have an uphill battle to penetrate the impenetrable auditor liability shields and caps.

    What’s lost in all of this discussion of efficiency and cost cutting?

    Independence protects shareholder’s interests.

    Looking Out For Me, Myself, And I

    By • Mar 15th, 2009

    There is at least one person who doesn’t have to worry about having a good job, at KPMG no less. Thomas Ray was the Chief Auditor and Director of Professional Standards for the PCAOB.

    According to WebCPA:

    Ray is joining KPMG as a partner in the firm’s department of professional practice in New York.

    The Auditors’ Chinese Wall – Is SOx Still A Keystone?

    By • Feb 20th, 2009

    When the Sarbanes-Oxley Act was passed in the summer of 2002, largely as a rushed reaction to Enron, it did get a few key things right. We can’t allow time, or fuzzy academics, to let us forget the good reasons for having made them.

    A Question Of Value – Why So Much Ado?

    By • Oct 21st, 2008

    What we have we prize not to the worthWhiles we enjoy it, but being lacked and lost,Why, then we rack the value, then we findThe virtue that possession would not show usWhiles it was ours. William Shakespeare (1564–1616), British dramatist, poet. Friar Francis, in Much Ado About Nothing, act 4, sc. 1, l. 218-22. We […]

    Alcoa – Let Me Tell You How The Good Guys Do It

    By • Sep 22nd, 2008

    I was in San Francisco September 6-10 for the CFO.com Technology Conference. I’ve already told you the story of how this came to pass. Vinnie Mirchandani is not only smart and good at what he does, he’s a really nice guy. Only thing, Vinnie…Next time stick the GPS device on the dashboard. Watching the driver […]

    Arthur Levitt – Looking Down From The Mountain

    By • Jun 9th, 2008

    Arthur Levitt recently gave an interview in a Dutch publication de Accountant.  Accountancy Age in the UK highlights some key quotes and provides a link to the full article in English.   Levitt comments about the potential need for “audit-only” firms and his encouragement of, “…greater transparency, to understand what condition a firm is in. […]