McKenna Now Writing At American Banker
I’m writing now for American Banker. My first column covers a new appointment at Deloitte and how this might affect the firm’s clients in the mutual funds industry.
Inside The Mind of An Inside Trader
/8 Comments/in Independence, Latest, PCAOB, Pure Content, Regulators, Laws, Standards, Regulations, SEC, The Big 4 And ConsultingThe SEC has accused one of the most prominent businessmen ever implicated in such crimes, Rajat Gupta, a former McKinsey & Company Global Managing Director, of insider trading. It’s understandable that, in the heat of this moment, some might naïvely compare the consequences of the criminal indictment of an audit firm with civil charges against an individual, albeit one who trades on – pun intended – his association with a prestigious professional services firm. It’s not the same thing.
Auditor Independence: Will “Crisis” Cause Compromise?
/13 Comments/in Independence, Internal Audit, KPMG, Latest, PricewaterhouseCoopers, Pure Content, Sarbanes-Oxley, The Big 4 And GlobalizationGiven the pressures on costs and the longstanding ties some finance, audit, and accounting executives have with the accounting firms, it is not surprising that the weakening of the independence commitment may come from the companies themselves. What’s the downside for them? The potential for scrutiny by corporate governance experts and journalists? You can’t argue with a recession. And in the event of an accounting scandal or restatement, plaintiff’s lawyers will have an uphill battle to penetrate the impenetrable auditor liability shields and caps.
What’s lost in all of this discussion of efficiency and cost cutting?
Independence protects shareholder’s interests.
PCAOB – Seeing The Big 4 Through Rose Colored Glasses
/18 Comments/in Audit Quality, Fair Value, Independence, PCAOB, SECUnfortunately, I was unable to attend the AICPA National Conference on PCAOB and SEC Developments in person. As much as I would have loved to be there live, to ask questions and, perhaps, walk all over the wafflers with my Manolos, it’s not always possible. In this case it may have been just as well. […]
Hedge Funds And Their Auditors – It’s Good To Be Aggressive
/20 Comments/in Audit Quality, BDO, Deloitte, EY, Independence, PCAOBEvery 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 […]
Cage Match – The Lawyers vs. The Accountants
/7 Comments/in Independence, Lehman Brothers, PricewaterhouseCoopers, SECFunny thing happened last night while chatting with the COO of one of the major hedge funds, a group that has been much maligned lately for being shortys. For the umpteenth time in the last month or so it seems, someone assumed that my partner in our firm (actually my brother) was my husband. “PS. […]
Nickels and Dimes – They Add Up…
/3 Comments/in EY, Independence, PricewaterhouseCoopersMichael David Thomas over at The Daily Caveat does a nice wrap up on the latest charges by the SEC against AOL/Time Warner. Who is AOL/Time Warner’s auditor? It has been Ernst and Young since before the merger between AOL and Time Warner in January of 2000. Ernst and Young was also AOL’s auditor before […]
Deloitte – Good Corporate Citizen, Good Soldier
/4 Comments/in Deloitte, IndependencePhoto Source All the firms spend a lot of time and money publicizing their good works. Between time spent on volunteerism and donations by their offices and foundations and all the diversity crapola, it’s a bucketful of money they spend to erase the fact that they’re otherwise sucking money out of the economy for a […]
Who Audits The Auditors’ Pricing Models?
/1 Comment/in IndependencePhoto Source I’ve received several copies of the press release below in the last day or so. Given all the concern regarding asset pricing, especially of non-marketable securities, complex derivatives and other exchange traded and OTC products, I found this announcement refreshing and scary at the same time. It’s refreshing if the firms are reviewing […]
The Big 4 And Their Travel Card Relationships – Comfy And Cozy
/3 Comments/in Deloitte, EY, Independence, KPMG, PricewaterhouseCoopersThis blog has recently been reminding you of the independence standards imposed on the audit firms with regard to their relationships with their vendors. Don’t get me wrong… It’s not easy for anyone to keep it all straight. In my previous post on PwC’s relationship with Aramark as a vendor for its cafeteria, […]
The Big 4 and A Living Wage
/5 Comments/in Deloitte, EY, Goldman Sachs, Independence, KPMG, PricewaterhouseCoopersPhoto Source There’s an ongoing dialogue related to my Big 4 Blind Items post. Specifically, someone added a comment regarding outsourcing/off shoring work by the Big 4 to India and other lower wage countries. My comment, regarding my experiences while a Managing Director for KPMG Consulting/Bearing Point in Latin America, is there, too. However, that […]