auditor independence or a lack thereof

PwC Fined $7.9 Million By the SEC for Making Pretty Dumb and Obvious Independence Violations

About a month ago, we chided RSM US for being fined $950,000 by the SEC for getting caught providing non-audit services to audit clients, saying that a firm like RSM should’ve known better. But PwC got busted today by the SEC for also doing non-audit work for audit clients, which pretty much reinforces how shady […]

Marcum’s Microcap Conference Seemed Like a Great Event for Auditor Independence Violations

In the storied history of auditor independence violations by PCAOB-registered accounting firms, Marcum broke the rules in a rather unique and spectacular way: it publicly advocated its audit clients as investment opportunities. The PCAOB was probably giddy writing and sending out this press release on Sept. 10: The Public Company Accounting Oversight Board today announced […]

RSM US’s $950,000 Fine Is a Reminder That Performing Non-Audit Services for Audit Clients Can Get You Into Trouble

You’d think a firm like RSM US would know this by now, but guess not. The Securities and Exchange Commission today charged public accounting firm RSM US LLP with violations of the agency’s auditor independence rules in connection with more than 100 audit reports involving at least 15 audit clients. Yes, auditor independence is a […]

Auditor Swap: Bubble Popped On EY’s Engagement with Sealed Air Corp.

Bubble Wrap maker Sealed Air Corp. disclosed in a securities filing earlier this week that it dumped EY as its external auditor and hired PwC, the Wall Street Journal reported yesterday. Now, EY losing an audit client isn’t all that shocking. According to Audit Anaytics’ recent analysis of auditor changes in the second quarter of […]

PwC Mexico Partners Must Have Thought Auditor Independence Rules Did Not Apply to Them

A friendly reminder to audit firms: an auditor must maintain independence in both fact and appearance. Maybe PwC Mexico forgot this when it took over in fiscal year 2016 as the auditor of one of the largest financial services holding companies in Mexico. It just so happened that at the time the engagement letter was […]

Deloitte sign

PCAOB Fines Deloitte Canada $350,000 for Breaking Independence Rules Thrice on Audits of Banro

Deloitte Canada scored a hat trick of sorts on Oct. 16, but I doubt it was celebrated among the firm’s management. The firm was censured and fined $350,000 by the Public Company Accounting Oversight Board on Tuesday for failing to maintain independence during its 2012, 2013, and 2014 audits of Canadian gold-mining company Banro Corp. […]

PwC Toeing Thin Line Between Independent Auditor and Client Lobbyist for Tax Reform

Francine McKenna of MarketWatch reported on July 30 that PwC has earned $10.74 million since 2013 as the exclusive registered lobbyist on tax reform for a coalition that includes several audit clients, which some say is a conflict of interest. Members of the Alliance for Competitive Taxation—which calls itself “a group of America’s leading companies […]

The SEC is Not Pleased With KPMG’s Independence

Oh man. It's been a pretty crappy week for KPMG except for that whole Phil Mickelson sponsorship renewal… hopefully that will make up for this: The Securities and Exchange Commission today charged public accounting firm KPMG with violating rules that require auditors to remain independent from the public companies they’re auditing to ensure they maintain […]