July 16, 2018

independence or lack thereof

Exposure Drafts: How Kris Kringle Lost His CPA License

Exposure Drafts comes to town every other Wednesday. Send comments and suggestions to [email protected]

Oh Look, Another Big 4 Audit Firm Settled with the SEC Over Independence Violations

The SEC has fined Deloitte over $1 million for violating auditor independence rules. The consulting side of the house had a thing going with a trustee, Andrew Boynton, of three funds the firm audited. Deloitte did self-report the violation in 2012, although at that point, the firm had been violation for five years. Sounds like […]

SEC Accuses Mayer Hoffman McCann of Really Stupid and Obvious Independence Violation

Let's break down this order from the SEC, filed last week, as simply as we can because A) I'm still high on cold pills and B) ain't nobody got time for that. Mayer Hoffman McCann (MHM) is "associated with" CBIZ (CBIZ) through an alternative practice structure (APS). This means MHM leases from CBIZ virtually all […]

Ventas Fires EY as Auditor Over Independence Violation

And by “independence violation” we mean “they were probably banging”

#TBT: The Pre-Enron Scandal That Warned Against Big 5 Firms Violating Independence

Just in time for Independence Day! From "The Pwc Scandal Changes Everything," which appeared in Businessweek back in February of 2000: Regulators are putting pressure on the entire profession. The SEC has directed the accounting industry's watchdog, the Public Oversight Board, to investigate seven other major accounting firms. The Big Five are being required to […]

KPMG Was Never Out of the Consulting Business, FYI

As we all know, the period of time circa 2001-2002 were not the best of times for the ol' auditing firms. Accounting scandals were aplenty, Arthur Andersen went down for the dirt nap and Heineken even got a holiday commercial out of it. And of course, we got Sarbanes-Oxley. A big sticking point from those […]

When CEOs and Audit Committee Members Are BFFs, Financial Statements Are Ps of S

Welcome to the latest edition of Accumulated Deprecation, Greg Kyte's monthly column. Go here to read more of Greg's posts. Dutch people are assholes. In the United States, under SarBox, a 100 percent independent audit committee's good enough, but a group of Dutch researchers1 don’t even want CEOs and audit committee members to be friends.2 […]

Sometimes Being Fired for an Independence Snafu Isn’t That Hard of a Pill to Swallow

Late on Friday, TransMontaigne Partners, L.P.*, "a terminaling and transportation company," issued a press release announcing that they had successfully filed its 10-K for 2011. Not a big deal really, but reading further one discovers that the company had very recently fired KPMG as its auditor: As previously disclosed, the audit committee of our general partner […]