signing off on audit reports – before the audit is done
From Going Concern, there’s an Accounting Age story that reported the Audit Inspection Unit in the UK found that “Auditors have also been accused of altering documents before handing them to regulators and putting cost savings ahead of quality,” but also “The report also found some cases where partners signed audit reports before the audit [...]
flextime? so very not…
“In January 2009, accounting giant KPMG unveiled its new Flexible Futures program for its 11,000 UK-based employees. The options include: a four-day workweek and a 20% reduction in base pay; a four- to twelve-week sabbatical at 30% base pay; a combination of the two options; or sticking with the status quo. “ That’s a pay [...]
vacationing with your PDA
Barry Salzberg, CEO of Deloitte, gives us his tips for truly enjoying your vacation! …e-mails are a given on vacation, but a leader needs to establish clear boundaries and expectations. Generally, I make it known that I work for about an hour in the morning and one hour in the evening. Throughout the day, I [...]
one time I feel sorry for lawyers
Richard H. Smith (the former vice chairman in charge of tax services at KPMG) once charged in the biggest tax fraud ever, owes his lawyers a debt of gratitude for getting him out of what could have been life in prison. He also owes them $1.3 million, they claim, alleging one of the more outrageous [...]
the PCAOB throws the iron fist
The Public Company Accounting Oversight Board said Wednesday it has fined a Deloitte & Touche partner $75,000 for allegedly helping Navistar International Corp. (NAV) and unit Navistar Financial Corp. avoid restating 2003 financial results. This marks the second time the U.S. oversight board for public company auditors has ever assessed a civil money penalty against [...]
the Big 4′s burden
“We’ve always had this expectation gap between what the auditor really can do and what the investing public wants the auditor to do, or wants the audit to represent.” – William Parrett, CEO, Deloitte I think Parrett’s a bit disingenuous here – unsurprisingly. The gap is between what the Big 4 claim they do and [...]
G.E. – the next Enron?
There may be more to come. The S.E.C. said that its investigation of G.E. was over, but it did not say that about any of the accounting officials at the company, or any of the people at KPMG, G.E.’s longtime auditor. Link here (“Inside G.E., A Little Bit of Enron”) Maybe I’m overreacting (and you [...]
the pot accuses the kettle of blackness…
If, like me, you spent time working for a Big 4 firm you’ll appreciate the humor in this (slightly edited by me) quote: ““Over half of respondents are concerned with the bureaucracy which they believe contributes to government ineffectiveness in this area. Around a third are also concerned about short-term planning horizons, the neglect of [...]
auditors and clients, sitting in a tree, k-i-s-s-i-n-g
Hmmm. Perhaps auditors might have been useful in this situation: But state regulatory filings offer a different picture. They show that A.I.G.’s individual insurance companies have been doing an unusual volume of business with each other for many years — investing in each other’s stocks; borrowing from each other’s investment portfolios; and guaranteeing each other’s [...]
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