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 not to get too excited by any one positive development...
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) and the Public Company Accounting Oversight
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 and the legal liability faced by both
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 whose shares are traded in U.S.
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 as the industry watchdog, in addition
to the SEC...
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 Attorney General's case against Ernst & Young...
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 and detect fraud during the performance of their...
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 statements made by management and that they...
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 public companies.
There was an apparently positive...
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, the largest firms that audit the
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 public. In the Matter of Ernst & Young
Last week I posted a column at Forbes: Already Behind The Eight-Ball: Auditors of Broker-Dealers Are A
The Public Company Accounting Oversight Board, the US
audit industry regulator, issued its
first report on the auditors of broker-dealers this week and it was ugly.
The PCAOB inspection...
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...
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.
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 and Harvard Business School Professor Suraj Srinivasan...