The Indictment of S.A.C. Capital Advisors: Where Was The Auditor?

What a difference a week makes. In the space of only seven days, the Securities and Exchange Commission charged Steven Cohen, owner of hedge fund S.A.C. Capital Advisors, with “failing to supervise two senior employees and prevent them from insider trading under his watch,” and the Department...

Broker-Dealer Audits Still Badly Broken

On August 19, 2013, the Public Company Accounting Oversight Board, the audit industry regulator, released its second report on its interim inspection program for auditors of brokers-dealers registered with the Securities and Exchange Commission. The PCAOB’s second “progress” report...

$99 Million Buys EY Ticket Out Of Private Lehman Litigation, Finally

Last defendant standing. Not an enviable place for EY in the case, In re Lehman Brothers Securities and ERISA Litigation . Everyone else had folded their tent, paid the price to cross this dog off the list. Lehman underwriters agreed in 2011 to a $426.2 million settlement. UBS, one of the underwriters...

Call of Duty: Who Has The Last Word On “Network” Audits of US-Listed Companies?

On December 4 the PCAOB re-proposed a rule to require public companies to disclose the engagement partner’s name for the most recent period’s audit and the names, locations, and extent of participation of other public accounting firms that supported the completion of the audit. There are...

Pricewaterhouse Cooper Faces a Trial For SemGroup Audit and Its Defense Is Predictably Slick

Pricewaterhouse Cooper (PwC), the former auditor of SemGroup, a Tulsa, Oklahoma oil-and-gas service company, is scheduled to go to trial in August, almost six years after SemGroup’s bankruptcy, for malpractice. SemGroup was the second-biggest bankruptcy of a non-financial company in 2008. The SemGroup...

“Tax Avoidance On An Industrial Scale” Says British MP About PwC’s Luxembourg Work For AIG And Others

On Monday of this week, British MP Margaret Hodge grilled Kevin Nicholson, lead partner of PwC’s UK tax practice, in a Parliament Public Accounts Committee hearing about the firm’s Luxembourg tax arrangements. This follows the International Consortium of Investigative Journalists’ ...