Recent Posts

Temperature Heats Up in PCAOB-China Talks
Posted on 2 Nov 2011 by David N. Feldman

The Reverse Merger Wire reports that Public Company Accounting Oversight Board (PCAOB) Chair James Doty is growing a little impatient with Chinese securities regulators over the issue of inspections of Chinese accounting firms that are auditing US... Read More

Call of Duty: Who Has The Last Word On “Network” Audits of US-Listed Companies?
Posted on 7 Jan 2014 by Francine McKenna

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... Read More

Foley & Lardner: PCAOB Issues Concept Release Seeking Input on Possible Changes to Auditors' Reports
Posted on 19 Jul 2011 by Foley & Lardner LLP

On June 21, 2011, the Public Company Accounting Oversight Board (PCAOB) issued a concept release seeking input on possible changes to auditors' reports. These changes, if adopted, have the potential to increase both the cost of required audit services... Read More

Four Years After Madoff, Audits and Auditors of Broker-Dealers Still Lousy
Posted on 30 Aug 2012 by Francine McKenna

Last week I posted a column at Forbes: Already Behind The Eight-Ball: Auditors of Broker-Dealers Are A Disaster The Public Company Accounting Oversight Board, the US audit industry regulator, issued its first report on the auditors of broker-dealers... Read More

PCAOB’s Emerging Market Alert – A Helpful Review Of Auditor Requirements, But Not An Audit Committee Or Board Standard, Of Course
Posted on 10 Oct 2011 by Dave Tate

The Public Company Accounting Oversight Board's recently issued twenty-two page Staff Audit Practice Alert No. 8 for audits of companies with operations in emerging markets offers a good summary of the standards that require auditors to test for... Read More

Looking at the Costs and Benefits of SOX
Posted on 24 Mar 2014 by Kevin M. LaCroix

The Sarbanes Oxley Act was enacted nearly twelve years ago in the midst of profusion of corporate scandals. Despite the passage of time, the Act has remained controversial. In order to evaluate the Act’s impact, Harvard Law Professor John C. Coates... Read More

PCAOB and SEC Meet with Chinese Regulators Regarding Audits
Posted on 12 Aug 2011 by Thomas O. Gorman

U.S. and Chinese regulators recently met in Beijing to discuss audit oversight cooperation. Those meetings are of particular interest in view of the questions which have been raised in recent months regarding the financial statements of Chinese issuers... Read More

At Deloitte, More Pain Before Any Quality Gain
Posted on 1 Dec 2011 by Francine McKenna

The PCAOB, the audit industry regulator, shamed global audit firm Deloitte recently when they exposed the private portion of the inspection report of the firm's 2006 audits. It was the first time that had happened to one the Big Four audit firms... Read More

PCAOB Considers Mandatory Audit Firm Rotation
Posted on 18 Aug 2011 by Thomas O. Gorman

Auditor independence is a key provision in the Sarbanes Oxley Act of 2002. In the wake of the Enron, Worldcom and other scandals the Act focused in part on auditor independence and audit quality, creating the Public Company Accounting Oversight Board... Read More

Will Auditors Be Held Accountable? The PCAOB Has A Plan
Posted on 23 Mar 2011 by Francine McKenna

I view successful litigation against negligent auditors and strong enforcement of sanctions for auditor malpractice as positive developments. This is a view many of my readers would disagree with. However, I've learned over the last four years... Read More

Recent Comments On European and U.S. Audit Reform
Posted on 10 Oct 2011 by Francine McKenna

The topic of audit industry reform is hot again. OK, that's relative to where you stand on what's hot. But in the world of legal and regulatory compliance and auditors the only thing hotter would be a significant development in the New York... Read More

A Potentially Costly Combination: Deloitte, Taylor Bean and the PCAOB
Posted on 21 Oct 2011 by Mark Zimbelman

If you follow news affecting auditors, you may have noticed that the PCAOB made a very rare disclosure yesterday about one of the big four firms, Deloitte. The PCAOB said that Deloitte was previously sanctioned for not being skeptical enough to challenge... Read More

Not Over Until It’s Over: Price Waterhouse India Settles Satyam
Posted on 12 Apr 2011 by Francine McKenna

We waited eight hundred and eighteen (818) days to see Price Waterhouse India held accountable for audit failure at Satyam Computer Services, the NYSE-listed Indian IT services provider. On April 5, 2011, the Securities and Exchang e Commission (SEC... Read More

Broker-Dealer Audits Still Badly Broken
Posted on 5 Sep 2013 by Francine McKenna

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... Read More

PCAOB Imposes Record Fine on E&Y in Public Proceeding
Posted on 9 Feb 2012 by Thomas O. Gorman

E&Y was censured and fined a record $2 million by the PCAOB in connection with repeated violations of professional standards. It was imposed in a proceeding that was filed in March 2011 as a non-public but which, for good cause shown, was made... Read More