Bloomberg (October 14)
“Ernst & Young LLP took Bernie Madoff at his word when it signed off on audits of a fund that helped feed the biggest Ponzi scheme in U.S. history. The firm must now defend that decision at the first trial of an auditor over losses tied to Madoff, who’s serving a 150-year prison term for stealing billions of dollars from thousands of investors.” The case will be tried by jury in a state court in Seattle and comes just after “the Public Company Accounting Oversight Board, the lead U.S. audit regulator, warns that one in three audit opinions in the U.S. lack appropriate supporting evidence.”
Tags: Audits, Bernie Madoff, Ernst & Young, Evidence, Investors, PCAOB, Ponzi scheme, Prison, Regulator, Seattle, Trial, U.S.
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.
