The Vatican appointed its first auditor-general on Friday in Pope Francis' latest move aimed at ensuring transparency in the scandal-plagued finances at the headquarters of the Roman Catholic Church.A statement said the pope, who has made cleaning up finances a major plank of his papacy, had chosen Libero Milone, a 66-year-old Italian who is a former chairman and CEO of the global auditing firm Deloitte in Italy.Cardinal George Pell, head of the Vatican's Secretariat for the Economy, has said the auditor-general will be autonomous, answerable only to the pope and free to "go anywhere and everywhere" in the Vatican to review the finances and management of any department.
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Orient Paper’s Auditor Left Out That Part About Not Being Licensed
- Caleb Newquist
- March 25, 2011
Details-shmetails.
In an 8-K regulatory filing and in a press release, Orient Paper said it was unaware of the problem until recently. Called the Davis Accounting Group, the Cedar City, Utah-based audit firm was supposed to be licensed by its home state, but its license lapsed in September 2008 and was formally revoked as of November last year. “During the time when Davis Accounting was retained by the Company, Davis Accounting represented that it was in good standing,” Orient Paper said in its press release.
Other than that, everything is kosh. Deloitte even said so. BDO Hong Kong is doing the restatements so everyone can pretend this never happened.
Orient Paper: Ex-Auditor Forces 2008 Re-Audit [TS]
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Muddy Waters CEO: There Are Some Big 4 Partners in China Conspiring to Defraud Investors
- Caleb Newquist
- October 14, 2011
As you probably heard, the PCAOB officially put out a proposal earlier this week for audit partners to be named in the annual reports of public companies. It would also require “registered firms to disclose the name of the engagement partner for each audit report already require the form” and “disclosure in the audit report of other accounting firms and certain other participants that took part in the audit.”
While most Big 4 audit partners are probably feeling a little chapped by this whole proposal, there is at least one person going on record (by way of PCAOB comment letter) that feels that it doesn’t go far enough. That would be Carson Block, the CEO and founder of research firm Muddy Waters. In Block’s letter (in full on page 2) to the Board he writes that not only should the engagement partner be identified but that he or she should be putting their name on the audit opinion because “[it] will decrease investors’ future losses to fraud and gimmicky accounting by billions of dollars.”
That on it’s own is enough to get more than a few people riled up. But as we indicated, there are some conspiracy and fraud accusations as well:
Even the most reputable auditors in China seem to be in a race to the bottom. We believe that there are particularly egregious situations in which some Big Four partners in China offices have actually conspired with their clients to defraud investors. Further, it is a reasonable proposition that the conflict of interest inherent in the Chinese auditors’ business model also affects the quality of US company audits.
Now before your knickers in a twist, don’t forget that this is the guy who called Sino-Forest a “Ponzi Scheme for the 23rd Century” which more or less looks to be accurate. Further, if you consider all the trouble Big 4 firms have had with Chinese companies listed in the U.S. and elsewhere, it doesn’t seem to be that much of a stretch that some partners would just say fuck it and work with their clients to keep a lid on the shenanigans than go through the pain of actually doing their jobs.
Regardless, with these accusations the PCAOB may try to make another run at getting the Chinese to play ball.
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Carillion Liquidators Roast KPMG: “A Competent Auditor Would Have Detected the Misstatements”
- Going Concern News Desk
- November 29, 2022
The Carillion failure is still working its way through the courts and now KPMG is […]