Here’s something that won’t surprise anyone: A study from the University of Missouri found that auditors defer to information provided by management. In the study, nearly 50 senior auditors from major accounting firms were asked to assess the cost of an explosion at a client’s facility based on memos provided by the company’s finance chief. […]
Independence: its complicated. Except it isn’t, really. Audits firms are conflicted because they’re paid by the organizations who they’re supposed to be independent of audit clients. Most people, I think, know this yet choose to ignore it. Fine.
These days, you hear more and more about people juggling multiple projects at once. You know, a day job, the moonlighting gig, a passion project, the "I was just fucking around and it became a thing"1 thing, among others. You would think that accounting firms, known for working people so hard that it renders them […]
Last week the PCAOB approved its 2016 budget and also its "strategic plan" through 2019. That might sound like a more potent sleeping aid than tryptophan, but sometimes board members say interesting bits worth sharing and, today, we have some for you. Each of the board members made pretty benign statements — quibbles about the […]
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 […]
People like getting worked up about auditor independence. For firms, it's a badge of honor. They like pointing to it as a virtue of their business. You know — objectivity, integrity, all that crap. For audit firm critics, picking a fight over independence is easy. All anyone has to say is, "Audit firms are paid by […]
According to a tipster, KPMG distributed this the other day, because apparently sleeping with your coworkers is a serious problem over there.
Another day, another "year in review best of" list. Except this list is actually the "worst of" 2014. It's been an exciting year for auditing. PCAOB inspection rates were some of the worst to date, and then there was that whole thing where an audit partner was banging the Chief Accounting Officer at the client's. […]
The rise of non-audit services offered by accounting firms could threaten the quality and integrity of independent audits, said Steven Harris, a key member of the government’s watchdog agency. Although the Securities and Exchange Commission has limits on the kinds of consulting and advisory work audit firms can perform for their clients, that line may […]