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Will Auditors Be Held Accountable? The PCAOB Has A Plan

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...

Two Wildly Different Stories About Deloitte: Or Are They?

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 piece....

Comments about James Doty’s Speech – A Poor State of the Audit . . . and the Profession

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...

Going In Circles: A Few Remarks On Audit Reform

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...

Foley & Lardner: PCAOB Issues Concept Release Seeking Input on Possible Changes to Auditors' Reports

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 companies...

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...

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...

When Auditors Get Mixed Up in M&A, Smaller Clients Get Hurt

Over at Medium.com I’ve written about a new academic study, Shared Auditors in Mergers and Acquisitions , that documents an interesting, rarely commented on auditor conflict of interest. The data suggests that when an acquiring company and its target share the same auditor, the audit firms favor...