EY – Francine McKenna

E&Y, Their Audit Client Wal-Mart, and Value Pricing

March 23, 2013/5 Comments/in EY, Fraud, Independence, PCAOB, Pure Content, Regulators, Laws, Standards, Regulations, Sarbanes-Oxley, SEC, You Can Quote Me On That

This post about Ernst & Young’s aggressive tax advice to audit client Wal-Mart was originally posted October 29, 2007. It’s worth everyone – I’m talking to you SEC and PCAOB – taking another look at this given Wal-Mart’s new Mexican bribery problems and the SEC investigation of Ernst & Young for tax lobbying to audit clients. (Ernst & Young has been silent and left out of most media discussion about Wal-Mart’s FCPA problems in Mexico and elsewhere.)

Big Four Auditors and Jury Trials: Not In The U.S.

June 19, 2012/19 Comments/in Audit Quality, BDO, Deloitte, EY, Grant Thornton, KPMG, Latest, PCAOB, PricewaterhouseCoopers, Pure Content, Regulators, Laws, Standards, Regulations, Sarbanes-Oxley, The Case Against The Auditors, The Firms

You have to go outside of the US to see a trial of a Big Four audit firm to know what I’m talking about. Australia’s Centro case against PwC or Canada’s Nortel case where Deloitte partners testified recently tell you everything you need to know about why the Big Four will settle every time. Rather than have a jury and the public hear and see the pathetic state of the audit profession, its inability to stop executives who want to cheat, and its unwillingness to acknowledge liability as a firm when it screws up, the firms will reach into their seemingly bottomless pockets and pay up.

Update: Mortgage Servicer Foreclosure Review Process

December 27, 2011/4 Comments/in Attorney-Client Privilege, Bear Stearns, Deloitte, EY, Fraud, Independence, Latest, PricewaterhouseCoopers, Pure Content, Regulators, Laws, Standards, Regulations, Subprime, The Big 4 And Consulting

I was the first to report on December 6 the irony of Deloitte having been selected by, of all banks, JP Morgan Chase. The high likelihood of a conflict between the bank and the audit firm, and possibly the individual Deloitte partners assigned to the JP Morgan Chase review, should have been obvious to anyone at the OCC. It turns out I was right.

New at Forbes: My Comments On The Latest Sanctions Against Ernst & Young

August 3, 2011/4 Comments/in Audit Firm Management, Audit Quality, EY, Fair Value, Liability Caps, Partner Compensation, PCAOB, Pure Content, Regulators, Laws, Standards, Regulations, The Case Against The Auditors

As if Ernst & Young didn’t have enough to worry about now they’ve got a public airing of some dirty laundry by the PCAOB.

Making Mortgage Fraudsters Pay…But Via Private Lawsuits (And Some Attorneys General) Not Law Enforcement

July 5, 2011/9 Comments/in Audit Quality, Deloitte, EY, Fraud, KPMG, Latest, PricewaterhouseCoopers, Pure Content, Regulators, Laws, Standards, Regulations, SEC, Subprime, The Case Against The Auditors

Thank goodness for the plaintiffs’ bar and class action lawsuits. And state attorneys general. Without them, there’d be very little justice yet – or compensation – for any of the mortgage-related fraud perpetrated during the real estate bubble.

The Perils Of Pre-Inspection File Polishing

December 6, 2010/2 Comments/in Audit Quality, EY, Your Career

Ever wondered what it would be like to see your name in print? Most auditors do not aspire to seeing their name in the papers. It’s a career-limiting move to be cited in a bankruptcy examiner’s report or a disciplinary order issued by the PCAOB.

Will Ernst & Young Ever Be Held Accountable for the Lehman Failure?

October 31, 2010/42 Comments/in EY, Latest, Lehman Brothers, Pure Content, Regulators, Laws, Standards, Regulations, The Case Against The Auditors

I’d be exaggerating if I told you the Lehman bankruptcy examiner’s report, and its scathing indictment of Ernst & Young’s role in the biggest failure on Wall Street, answered my prayers. On the contrary. The more successful a fraud case is against Lehman’s executives, the less likely EY or any of its partners will suffer any consequences for their role in the Lehman fraud.

Compliance Week 2009 Day 1: What A Difference A Day Makes

June 4, 2009/in EY, Internal Audit, Latest, Pure Content

It was a great first day yesterday. I’ve been telling Matt Kelly, Editor of Compliance Week, that this year is better than ever. One profound change is the Twitter presence this year. Last year I was the only one Twittering, Matt did not yet have blogs on the Compliance Week site, and fewer people knew or cared what I was doing or why. This year, I share the front row at every presentation (and the backchannel) with several bloggers/Twitterers.

It’s A Race To The Finish – But There Are No Winners

May 11, 2009/85 Comments/in BDO, Deloitte, EY, Grant Thornton, KPMG, Latest, PricewaterhouseCoopers, Pure Content, The Big 4 And Globalization

Not so long ago, Dennis Howlett and I went public with a bet:

Which Big 4 audit firm is the next to fail?

Dennis believes that I’m betting on PwC as next to fail. I don’t honestly remember committing to that, but I’m willing to go with it for the sake of argument. This is in spite of the fact that the other Big 4 have plenty to worry about and the next tier firms are in no way ready for prime time.

If It’s Not One Thing, It’s Another – Auditors Getting Sued Over Madoff

December 18, 2008/15 Comments/in BDO, EY, KPMG, Madoff, PricewaterhouseCoopers, SEC, The Case Against The Auditors

The “victims” of the Bernie Madoff scandal are not taking their losses laying down. Why are so many suits suddenly being brought against the auditors of the funds that invested on behalf of their clients in the Madoff funds?

Hedge Funds And Their Auditors – It’s Good To Be Aggressive

November 11, 2008/20 Comments/in Audit Quality, BDO, Deloitte, EY, Independence, PCAOB

Every once and a while someone asks me, “fm, how do you keep up with all the news, the stories? How do you know all this stuff?” Well…Although I have been accused of conceit, presumption, being “too smart,” being too quick to draw conclusions, painting a whole firm black on very little basis, precociousness, general […]

What The Auditors Saw – An Update on Société Générale

October 14, 2008/1 Comment/in Attorney-Client Privilege, Audit Quality, Deloitte, EY, PricewaterhouseCoopers, Societe Generale

Prentice: It’s a fascinating theory, sir, and cleverly put together. Does it tie in with known facts?Rance: That need not cause us undue anxiety. Civilizations have been founded and maintained on theories which refused to obey fact.“What The Butler Saw”Joe Orton, 1969 Kerviel’s lawyers question Société Générale accountants PARIS: Jérôme Kerviel, blamed by Société Générale […]