Recent Posts

Ernst & Young Lehman Litigation: It’s No Victory If You’re Going To Trial
Posted on 29 Jul 2011 by Francine McKenna

It wasn't even a verdict. Just a decision by New York Federal Court Judge Lewis Kaplan in one Lehman failure cases Ernst & Young is fighting. A decision to allow substantially all of the allegations against Lehman executives and at least one... 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

More Sarbanes-Oxley Anniversary Thoughts
Posted on 6 Aug 2012 by Francine McKenna

The day my OpEd in the Financial Times was published, July 30, there were many other stories in other publications marking the occasion of Sarbanes-Oxley's tenth anniversary. Most of them focused on the lack of prosecutions of CEOs and CFOs for... Read More

Scott London Subverted Sarbanes-Oxley: Big Four Mock Audit Partner Rotation
Posted on 23 Apr 2013 by Francine McKenna

The earth rotates around the sun. Galaxy Doppler shifts are almost always redshifts. The further away the galaxy the faster it is receding. I'm learning a lot in my first class, Cosmology, in the University of Chicago Masters in Liberal Arts... Read More

Comments about James Doty’s Speech – A Poor State of the Audit . . . and the Profession
Posted on 23 Jun 2011 by Corporate and Securities Law Community Staff

by David Tate Many comments have already been made about the speech by James Doty (Chair, PCAOB) on June 2, 2011 at the SEC and Financial Reporting Institute 30 th Annual Conference. See the speech at Read More

PFGBest: Another Fraud, Another Example Of Weak Auditors and Weak Regulatory Oversight
Posted on 19 Jul 2012 by Francine McKenna

My latest column @Forbes is about the most recent futures industry fraud case, PFGBest. PFGBest is another reason why the industry's poor business environment, wracked with a crisis of confidence after MF Global, just got much worse. All Fall... 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

Deloitte, HP And Autonomy: You Lose Some But You Win Some More, Much More
Posted on 3 Dec 2012 by Francine McKenna

When HP announced its intention to acquire Autonomy, the British data analysis firm now mired in accusations of serious fraud , Deloitte probably shed some enormous tears of joy. Deloitte was more than happy, I'm sure, to rid itself of the Autonomy... 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

An Update on Lehman and Ernst & Young
Posted on 29 Jul 2011 by Mark Zimbelman

According to an article in the Wall Street Journal : A lawsuit contending that Lehman Brothers Holdings Inc.'s former officials, underwriters and auditors are responsible for investor losses should go forward for the most part, a federal judge... Read More

Two Wildly Different Stories About Deloitte: Or Are They?
Posted on 9 Jun 2011 by Francine McKenna

In the last few weeks, I've written two very different stories about Deloitte: One, published as media criticism by the Columbia Journalism Review , skewers new Deloitte Global CEO Barry Salzberg - and The New York Times - for misdirecting readers... Read More

Going In Circles: A Few Remarks On Audit Reform
Posted on 14 Jul 2011 by Francine McKenna

Don't get me wrong. I'm thrilled that there's a lot of traffic in my lane. What I mean is, it's good for everyone that we're talking about these issues and that someone other than me and a few other broken records are playing... Read More

Why Is The SEC Pursuing Deloitte Shanghai? Looks Like It’s Personal
Posted on 14 May 2012 by Francine McKenna

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 Longtop, a China-based company under investigation... 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

Big Four Auditors and Jury Trials: Not In The U.S.
Posted on 11 Jul 2012 by Francine McKenna

Deloitte has settled a shareholder case against the firm stemming from their role as auditor of Bear Stearn s, one of the early financial services firms to fail, be force sold or nationalized during the financial crisis of 2008-2009. Deloitte was dangerously... Read More