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...
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 from real world issues with a puff
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 http://pcaobus.org/News/Speech/Pages/06022011_DotyKeynoteAddress.aspx
I lend some of my thoughts...
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 these tunes.
Fairly new PCAOB Chairman Jim Doty...
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 ruled Wednesday.
According to the article, the...
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 of the allegations against Ernst & Young
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 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
Section 10A of the Securities and Exchange Act of 1934
requires reporting by auditors to the Securities and Exchange Commission (SEC)
when, during the course of a financial audit, an auditor detects likely illegal
acts that have a material impact on the financial statements and appropriate
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 for potential accounting fraud against
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 close to having to answer for its actions...
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 Down; PFGBest and MF Global Frauds Reveal Weak
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 false financial statement certification
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...
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 audit albatross . That may surprise some of you...
The earth rotates around the sun. Galaxy Doppler shifts
are almost always redshifts. The further away the galaxy the faster it is
I'm learning a lot in my first class, Cosmology, in the University of Chicago Masters in Liberal Arts Program . The
universe has order. There's synchronicity...