Reuters (November 29)
“European investors managing assets worth more than 1 trillion pounds ($1.28 trillion) are pressing top auditors to take urgent action on climate-related risks, warning that failure to do so could do more damage than the financial crisis.” The investors assert that the Big Four audit firms “are not giving enough weight to a potentially rapid transition towards a low-carbon future as governments implement the 2015 Paris Agreement to curb climate change.”
Tags: Assets, Auditors, Big Four, Climate change, Damage, Europe, Financial Crisis, Investors, Low-carbon future, Paris Agreement, Risks
Financial Times (May 10)
The auditing sector is undergoing a “pitch battle” with new EU regulations that require companies at least tender their audits every 10 years and change auditors every 20 years. “So far the result has been a merry-go-round of audits swapping between the Big Four—PwC, Deloitte, EY and KPMG—which handle 98 per cent of FTSE 350 audits and 95 per cent of those for Fortune 500 companies.”
Tags: Auditors, Audits, Big Four, Deloitte, EU, EY, Fortune 500, FTSE 350, KPMG, PwC, Regulations, Tenders
Financial Times (August 19)
Auditors bear some blame for the financial crisis, yet little has been done to improve the quality of their audits. The Public Company Accounting Oversight Board (PCAOB) has now proposed more detailed disclosure to highlight items of concern, even when a company passes the audit. “The Securities and Exchange Commission, which has the final say, should adopt the PCAOB’s proposal. This would match similar rules passed by the UK’s Financial Reporting Council…. Pass-fail cannot distinguish accounts that pass with flying colours and those that barely scrape by. Investors deserve better – and investors are auditors’ true constituency even if managers are their employers.”
Tags: Auditors, Audits, Disclosure, Financial Crisis, Financial Reporting Council, Investors, Pass-fail, PCAOB, Quality, Rules, SEC, UK
Bloomberg (March 1, 2012)Bloomberg (March 1, 2012)
Auditors have been at the heart of many recent accounting scandals. The U.S. Public Company Accounting Oversight Board (PCAOB) recently inspected Kyoto Audit Corp., finding numerous insufficiencies, including the failure to adequate examine revenue, the allowance for doubtful accounts and inventory valuation. The PCAOB’s report states the firm “had not obtained sufficient competent evidential matter to support its opinion on the issuer’s financial statements.” Kyoto Audit’s clients include Kyocera and Nidec, both of which have U.S.-registered securities.
Auditors have been at the heart of many recent accounting scandals. The U.S. Public Company Accounting Oversight Board (PCAOB) recently inspected Kyoto Audit Corp., finding numerous insufficiencies, including the failure to adequate examine revenue, the allowance for doubtful accounts and inventory valuation. The PCAOB’s report states the firm “had not obtained sufficient competent evidential matter to support its opinion on the issuer’s financial statements.” Kyoto Audit’s clients include Kyocera and Nidec, both of which have U.S.-registered securities.
Tags: Auditors, Kyocera, Kyoto Audit, Nicdec, PCAOB, Shortcomings, U.S.
