Posts

Failure to Earn: What Scattershot Enforcement of Sarbanes-Oxley Clawbacks Tells Us About Paybacks Under Dodd-Frank

I wrote at MarketWatch about the SEC’s proposed Dodd-Frank clawback rule.

The NYDFS Case Against Promontory and the Bigger Problem of Big Four Bank Consulting

Bank regulators should start hiring the consultants that are responding to bank regulatory sanctions, consent decrees and NPA/DPA legal orders directly, and also strictly monitor them. It’s time to change for regulators to change their approach before another waste of time, money and public trust occurs.

PCAOB’s Franzel Speaks to AAA; Are Auditors’ ICFR Opinions Just “Busy-Work”?

Auditor opinions on ICFR are not only not being done well, they are not producing warnings for investors and regulators that a material error and restatement is likely. Worse than that, when auditors get them wrong they whitewash their mistakes.

SEC News at MarketWatch

On July 21 Dodd-Frank will be five years old. If I hadn’t been through the same thing with Sarbanes-Oxley now twice, I’d be more excited. But the partisan rancor on this law, especially at the SEC, is even worse.

Looking Into SEC’s Equity Markets Structure Committee at MarketWatch

My piece on the SEC’s new Equity Market Structure Advisory Committee, spanning several online pages, is now out at MarketWatch.

Deloitte US First Female CEO; There’s More We Don’t Know

Wouldn’t it be nice if investors and other interested parties could look up new Deloitte US CEO Cathy Engelbert in a public and easily accessible registry and find out about all the audit clients where she has been a lead partner or a Quality Control partner? Has she ever been named in a lawsuit or been sanctioned? Let’s hope not.

When Auditors Get Mixed Up In M&A, Smaller Clients Get Hurt

A new study says smaller public companies are paying a premium for the prestige of a Big Four auditor but the auditors are dangling small clients as chum for their large acquisitive shark audit clients.

Journalists’ Obligations In The Shareholder Value Maximization Debate

I wrote about two journalists who penned sympathetic stories about shareholders and other stakeholders who can’t get their voices heard but who, in service to shorter and simpler narratives, paid short shrift to the active and contentious debate about shareholder primacy and shareholder value maximization.

Auditors Can Be Whistleblowers: A Guest Post On Recent Developments In Whistleblower Case Law

Several recent developments regarding auditor whistleblowers should be of interest to internal and external auditors and compliance professionals, whether they work for a public company or a professional services provider.

“Tax Avoidance On An Industrial Scale” Says British MP About PwC’s Luxembourg Work For AIG And Others

British MP Margaret Hodge grilled Kevin Nicholson, of PwC’s UK tax practice, in a Parliament Public Accounts Committee hearing on Monday. You know you’re on your “back foot” when the first thing out of your mouth has to be a denial that you lied under oath. More details about PwC’s tax avoidance scheme for audit client and US government owned AIG.

Piling Up For PwC

Update: The PCAOB is investigating PwC for its tax avoidance advice to Caterpillar, the Wall Street Journal is reporting. One down, more than 100+ PwC audit clients advised via Luxembourg to go…

Luxembourg Tax Leaks Put PwC On The Defensive

My latest column at Medium.com responds to PwC’s #LuxLeaks defenses: Illegal docs, legal advice. I also raise the obvious auditor independence issues which no one else is reporting.