Posts
Call of Duty: Who Has The Last Word On “Network” Audits of US-Listed Companies?
/2 Comments/in Latest, Pure Content, The Big 4 And GlobalizationWho has the last word on audit quality and compliance with GAAP and SEC filing requirements for US-listed foreign companies? If you were hoping it was the US audit firm, you’ll have to prove your case in court.
Only Money—Deloitte Pays Another Fine And Then Moves On
/4 Comments/in Pure Content, The Case Against The AuditorsDeloitte has been caught thumbing its nose at regulators again. Deloitte is the best example in the Big Four of how a large consulting business corrupts an audit firm.
$99 Million Buys EY Ticket Out Of Private Lehman Litigation, Finally
/3 Comments/in Featured, Latest, Pure Content, The Case Against The AuditorsLast defendant standing. Not an enviable place for EY in the case, In re Lehman Brothers Securities and Erisa Litigation. Holding out until the end has now cost EY $99 million, more than Lehman officers and directors.
Nothing SOx-y About SEC’s JP Morgan “Whale” Settlement
/11 Comments/in Food for Thought, Fraud, Latest, Pure ContentIf the JP Morgan “Whale” settlement was a true Sarbanes-Oxley success story, we’d see some bank executives going to jail. For a change.
On Herbalife And The Slow Death Of Value Investing
/1 Comment/in Audit Quality, Food for Thought, Regulators, Laws, Standards, RegulationsBig egos making shares move by waving their wands. That makes picking stocks based on fundamental analysis more than slightly anachronistic. A bit about Herbalife…
Unfrugal, Lawbreaking CEOs and Auditor Reputation: New At University of Chicago Booth School of Business
/3 Comments/in Food for ThoughtTwo new blog posts at University of Chicago Booth School of Business Capital Ideas blog. One is about public company CEOs who buy luxury items and break the law and the other is about auditor reputation. Now I need an example of a thrice-married and divorced audit partner with a gambling or drug addiction who owns a Ferrari and a private jet…
How Deloitte US May Be Held Liable For ChinaCast Fraud
/7 Comments/in Pure Content, The Big 4 And GlobalizationWhat’s different about this Chinese fraud lawsuit is that it names a US Big Four firm as a defendant. Not only has that not been done before but the US firms have traditionally been able to insulate themselves fairly successfully from frauds that happen abroad. It’s that global network “thang”.
Deloitte, HP And Autonomy: You Lose Some But You Win Some More, Much More
/7 Comments/in Latest, Pure Content, The Case Against The AuditorsWhen HP announced its intention to acquire Autonomy, the British data analysis firm now mired in accusations of serious fraud, Deloitte probably shed some enormous tears of joy. Deloitte can now openly replace those Autonomy audit fees with guilt-free consulting and lucrative alliance deals.
McKenna On NPR’s “All Things Considered”
/2 Comments/in Food for Thought, FraudI was asked to talk about HP and Autonomy tonight on NPR’s “All Things Considered” program.
HP and Autonomy: Material Writedown With A Side Of Serious Fraud
/5 Comments/in Audit Quality, The Case Against The AuditorsHP announced today it is writing down more than $5 billion, or almost half of the Autonomy acquisition price, because of “serious accounting improprieties, misrepresentation and disclosure failures” by Autonomy former executives. Deloitte was the auditor of Autonomy, a UK software firm acquired by HP in 2011 for $11.1 billion.
Forbes Magazine: Lying With Numbers
/6 Comments/in Fraud, Latest, Madoff, MF Global, Pure Content, Regulators, Laws, Standards, Regulations, You Can Quote Me On ThatThe SEC is busy chasing Ponzi schemers and foreign bribers. But bogus accounting remains a bigger danger to the markets. (More links.)