Accounting & Auditing


PwC sign

​PwC fined $2.1M for audit failures regarding BT Group fraud disclosures

2022-08-08T15:28:00+01:00By

PwC will pay a reduced fine of 1.75 million pounds (U.S. $2.1 million) as part of sanctions against the Big Four firm for failures in its fiscal year 2017 audit at BT Group after the U.K. telecommunications company adjusted its financials to reflect a fraud scandal in Italy.

Accounting fraud

Surgalign to pay $2M to settle accounting fraud charges

2022-08-04T15:15:00+01:00By

Medical implant manufacturer Surgalign will pay a $2 million penalty handed down by the SEC and recoup nearly $600,000 in incentive-based compensation from four senior executives who allegedly manipulated the company’s financial statements.

SEC appoints Anthony Thompson to second term on PCAOB

2022-08-02T19:34:00+01:00By CW Staff

The Securities and Exchange Commission announced the appointment of Anthony Thompson to a second term on the Public Company Accounting Oversight Board.

London dark

Ex-Carillion execs to face market abuse claims

2022-07-28T19:35:00+01:00By

Three former executives at collapsed construction firm Carillion each face six-figure fines for market abuse for “recklessly” making misleadingly positive and inaccurate statements about the company’s financial health despite knowing it was in trouble.

KPMG

FRC finalizes $17.4M fine against KPMG for Carillion, Regenersis dishonesty

2022-07-25T20:15:00+01:00By

KPMG was fined £14.4 million (U.S. $17.4 million) and severely reprimanded for providing false and misleading information relating to its audits of construction company Carillion and software business Regenersis.

Working table

Assessing results of FASB’s 2021 agenda consultation report

2022-07-20T20:06:00+01:00By

The Financial Accounting Standards Board’s 2021 agenda consultation report summarizes the extensive feedback FASB received when it asked stakeholders where it should focus its time and resources.

KPMG UK

FRC 2021/22 audit inspections: KPMG praised; BDO and Mazars rebuked

2022-07-20T15:32:00+01:00By

Improvements at KPMG resulted in each of the Big Four returning no audits requiring significant improvement during an inspection cycle for the first time in the last five years, according to the U.K. Financial Reporting Council’s latest quality review results.

Grant Thornton

​Grant Thornton UK to pay $1.6M over Sports Direct audit failings

2022-07-18T15:39:00+01:00By

Grant Thornton UK was fined a total of approximately £1.3 million (U.S. $1.6 million) by the Financial Reporting Council for failing to provide reasonable assurance during two separate audits at retailer Sports Direct International.

Climate policy

Survey: Firms early to prep for SEC’s climate-related disclosure rule

2022-07-18T12:45:00+01:00By

Respondents to a Compliance Week/CohnReznick survey assessing readiness for the SEC’s climate-related disclosure mandate aren’t waiting to see how the proposed rule plays out before getting their compliance house in order.

DiDi

Chinese companies facing HFCAA delisting seeking alternatives

2022-07-14T19:09:00+01:00By

Chinese businesses identified as noncompliant with the Holding Foreign Companies Accountable Act are trying a variety of strategies to circumvent or comply with the law before they are delisted from U.S. exchanges.

Rising costs

Survey: Inflation, climate risk top audit partner economic concerns for 2022

2022-07-11T12:57:00+01:00By

The economy, cybersecurity, climate change, and cryptocurrency are among top concerns for the year ahead expressed by U.S. public company audit partners as part of a new Center for Audit Quality survey.

Business argument

Materiality, Scope 3 emissions elicit debate in SEC climate rule comments

2022-07-06T13:40:00+01:00By

Comment letters in response to the SEC’s climate-related disclosure rule have laid out opponents’ issues with the proposal, while supporters have used the process to buttress the agency’s case for implementing it.

Mass storage

Financial volatility, supply chain disruptions among PCAOB 2022 inspection focuses

2022-07-05T13:40:00+01:00By

The Public Company Accounting Oversight Board will pay increased attention to how auditors are addressing changing risk landscapes because of the current economic environment during its 2022 inspections.

Accounting

FASB update clarifies fair value guidance for equity securities

2022-06-30T16:39:00+01:00By

The Financial Accounting Standards Board issued an update to its fair value measurement standard that clarifies conflicting guidance regarding equity securities.

Mergers

Survey: Tell us about your M&A compliance

2022-06-29T14:33:00+01:00Provided by Avalara

Take part in this 3-minute survey to help benchmark your mergers and acquisitions pain points against those of your peers. One lucky respondent will win a $200 Amazon gift card for completing the survey.

Brasseur_opinion

Historic EY fine latest by-product of KPMG cheating scandal

2022-06-29T13:44:00+01:00By

It is impossible to ignore the SEC’s $100 million fine against EY for employee exam cheating is double the amount the regulator penalized KPMG for its separate cheating scandal. Especially since the latter resolution appears to have served as a starting point for the SEC’s ruling on the former.

EY

EY fined record $100M for employee cheating scandal

2022-06-28T16:38:00+01:00By

Ernst & Young will pay $100 million after admitting to SEC charges addressing systematic cheating among its accounting professionals on CPA license exams over four years. The fine is the largest the agency has ever imposed against an audit firm.

AuditAdvice

PCAOB adopts new requirements for use of multiple audit firms

2022-06-22T23:02:00+01:00By

The Public Company Accounting Oversight Board announced its approval of a rule creating a new audit standard and amending a handful of others regarding audits involving multiple audit firms, the culmination of a project first launched in 2016.

Accounting

FASB removes goodwill accounting project from agenda

2022-06-16T15:44:00+01:00By

The Financial Accounting Standards Board tentatively ruled to remove a project regarding identifiable intangible assets and subsequent accounting for goodwill from its technical agenda.

Climate coins

Assessing the scope of FASB’s environmental credits project

2022-06-16T14:48:00+01:00By

The Financial Accounting Standards Board added a project to its technical agenda on environmental credits that will include recognition, measurement, accounting presentation, and disclosure.

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e-Book: Finance Automation: Thriving in the Age of Change

2022-06-13T11:53:00+01:00Provided by

While most accounting teams have replaced their manual accounting practices with an updated, digital version, many are still following the old rules, such as close-related tasks being completed on a certain day of the month.

SECBooks

CohnReznick fined $1.9M for audit failures at Sequential Brands, Longfin

2022-06-09T13:57:00+01:00By

Audit firm CohnReznick agreed to pay $1.9 million as part of a settlement with the Securities and Exchange Commission for improper conduct at two of its clients the SEC previously charged with filing fraudulent financial statements.

Auditcommunication

SEC acting chief accountant: Ethical culture key to auditor independence

2022-06-09T13:45:00+01:00By

Paul Munter, acting chief accountant at the Securities and Exchange Commission, released a statement acknowledging recurring issues agency staff have observed regarding auditor independence consultations.

Accounting fraud

Synchronoss to pay $12.5M over alleged accounting misconduct by former execs

2022-06-07T21:19:00+01:00By

The Securities and Exchange Commission announced software company Synchronoss Technologies agreed to a $12.5 million settlement for “long-running accounting improprieties” caused, in part, by alleged misconduct from senior executives.

AuditInspectionFeature

Tepid reception to ‘half-hearted’ U.K. audit reform measures

2022-06-07T15:26:00+01:00By

The U.K. government’s confirmed plans to shake up the audit market and improve corporate governance for the country’s biggest companies has received mixed response, with some key stakeholders lamenting “missed” opportunities.

PwC building

PwC fined $6.2M over Galliford Try, Kier Group audit lapses

2022-06-07T15:16:00+01:00By

PwC will pay a total of nearly £5 million (U.S. $6.2 million) as part of a pair of enforcement actions announced by the U.K. Financial Reporting Council regarding deficiencies in the Big Four firm’s audits at construction companies Galliford Try and Kier Group.

trending up

Report: SPACs drive restatement surge in 2021

2022-06-01T16:29:00+01:00By

The total number of restatements and individual companies disclosing restatements in 2021 rose to their highest levels since 2006, according to Audit Analytics’ latest annual review.

Accountingbestpractices

PCAOB bars former BF Borgers director over repeated audit failures

2022-05-25T13:58:00+01:00By

The Public Company Accounting Oversight Board barred Bo-Shiang Lien, a former audit director and nonequity partner at BF Borgers, for at least two years for violations of PCAOB rules and standards as part of four audits across three public companies.

KPMG UK

KPMG fined $4.3M for undocumented red flags in Rolls-Royce corruption case

2022-05-24T19:06:00+01:00By

The U.K. Financial Reporting Council announced a reduced penalty of approximately £3.4 million (U.S. $4.3 million) against KPMG for failures in its 2010 audit of car maker Rolls-Royce.

Digital currency

What to consider as FASB tackles digital assets

2022-05-24T16:19:00+01:00By

The Financial Accounting Standards Board unanimously decided to add a project to its technical agenda on the accounting and disclosure for certain digital assets, including cryptocurrencies. Experts weigh in on the current landscape and what form the project might take.

KPMG building

KPMG facing $17.6M fine following Carillion tribunal

2022-05-13T16:48:00+01:00By

KPMG is set to pay a reduced fine of £14.4 million (U.S. $17.6 million) from the U.K. Financial Reporting Council over its botched audits at collapsed construction company Carillion and software firm Regenersis.

Accounting investigation

PCAOB fines Citrin Cooperman $200K over audit failures

2022-05-12T17:26:00+01:00By

Citrin Cooperman was fined $200,000 by the Public Company Accounting Oversight Board for failing to meet PCAOB standards during its 2016 and 2017 year-end audits at an unnamed broker-dealer.

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CPE Webcast: Thriving in the age of change

2022-05-12T14:00:00+01:00Provided by

Finance automation solutions are enabling corporations to improve accuracy, execute tighter controls, and decrease risk. Accountants and auditors are unleashed to be more proactive, focus on complex and judgmental areas, and drive strategic business decisions.

CFTC building

CFTC proposal furthers transition from LIBOR in swaps

2022-05-10T19:26:00+01:00By

The Commodity Futures Trading Commission proposed a rule that would replace certain swap rate clearing requirements pegged to the London Interbank Offered Rate with other alternative reference rates that are less susceptible to manipulation.

Treasury Department

New sanctions add ban on U.S. accounting, management consulting work in Russia

2022-05-09T19:02:00+01:00By

The Treasury Department unveiled a host of new sanctions against Russian and Belarusian individuals and banks, in addition to a ban on U.S.-based accounting, management consulting, and trust and corporate formation services to any person located in the Russian Federation.

Green reporting

Need to know: SEC climate-related disclosure attestation requirements

2022-05-09T18:29:00+01:00By

While the Securities and Exchange Commission’s proposed climate-related disclosure rule is being finalized, affected companies should begin considering new attestation requirements for accelerated and large accelerated filers regarding greenhouse gas emissions.

Russia Ukraine economy

SEC: Companies must adequately disclose financial impact of Russia’s war on Ukraine

2022-05-05T18:50:00+01:00By

The Securities and Exchange Commission is warning public companies they must accurately and adequately disclose the material impact on their business caused by Russia’s war against Ukraine.

Brumadinho dam rupture

SEC accuses Vale of safety audit manipulation in 2019 dam collapse

2022-04-29T17:21:00+01:00By

Brazilian mining company Vale was accused by the Securities and Exchange Commission of making false and misleading safety audit and disclosure claims prior to the January 2019 collapse of its Brumadinho dam.

Accounting computer

FASB reference rate proposal seeks to extend LIBOR transition relief

2022-04-28T13:26:00+01:00By

The Financial Accounting Standards Board announced a proposed standard update that would defer for two years the end date of relief provided by transition guidance for businesses shifting away from the London Interbank Offered Rate.

Deloitte

​Deloitte to pay $1.8M for goodwill testing failures in Mitie Group audit

2022-04-26T19:11:00+01:00By

The U.K. Financial Reporting Council announced a reduced penalty of 1.45 million pounds (U.S. $1.8 million) against Deloitte regarding goodwill testing failures during its audit of facility management company Mitie Group for fiscal year 2016.

Domino's Pizza

SEC hits ex-Domino’s accountant with nearly $2M insider trading penalty

2022-04-22T18:08:00+01:00By

A former Domino’s Pizza accountant was hit with a nearly $2 million penalty for using nonpublic earnings reports to gain an advantage in illegal trading activity, according to the Securities and Exchange Commission.

Auditinspection

PCAOB issues two first-of-their-kind sanctions

2022-04-20T19:47:00+01:00By

The Public Company Accounting Oversight Board imposed monetary penalties and other sanctions in two unrelated actions for violations of the Sarbanes-Oxley Act and PCAOB rules and standards concerning the use of unregistered accounting firms in conducting issuer audits.

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IESBA broadens definition of public interest entity

2022-04-19T19:24:00+01:00By

New guidance released by the International Ethics Standards Board for Accountants broadens the definition of a public interest entity and complements other recently revised provisions to the International Code of Ethics for Professional Accountants.

Lease accounting

Survey: Lease accounting implementation at critical point

2022-04-19T13:24:00+01:00By

The “2022 Global Lease Accounting Survey” from EY and LeaseAccelerator covers how public and private companies address U.S. and international accounting requirements and challenges they have had and expect to face post-implementation.

Deloitte

FRC probing Deloitte over Go-Ahead audits

2022-04-12T15:12:00+01:00By

The U.K. Financial Reporting Council has launched an investigation into Deloitte regarding its audits performed at passenger transport company Go-Ahead Group.

Accounting coronavirus

Report: Pandemic fuels goodwill impairment spike in 2020

2022-04-11T20:12:00+01:00By

Goodwill impairment recorded by U.S. public companies more than doubled in 2020, but the total still fell short of the figure observed at the onset of the 2008 financial crisis, according to the latest annual report from Kroll.

Rising data

AA study: Cybersecurity breach disclosures surge in 2021

2022-04-08T15:26:00+01:00By

The number of cybersecurity breaches disclosed by public companies in 2021 increased 44 percent while reports of ransomware attacks also surged, according to the latest Audit Analytics study.

KPMG

Ex-KPMG audit head fined record $100K by PCAOB over cheating scandal

2022-04-06T14:56:00+01:00By

Scott Marcello, the former vice chair of audit at KPMG during the Big Four firm’s infamous cheating scandal, was fined a record $100,000 by the Public Company Accounting Oversight Board for his supervision failures.

DOJSeal

Ex-Poseidon exec gets 3-year sentence in securities fraud case

2022-04-05T22:03:00+01:00By

Joseph Kostelecky, former executive VP of U.S. operations at Poseidon Concepts, was sentenced to three years in prison and ordered to pay approximately $406.2 million in restitution for perpetrating a scheme to fraudulently inflate the company’s reported revenue.

Auditinspection

PCAOB urges auditors assess widespread implications of Ukraine crisis

2022-04-04T11:41:00+01:00By

Auditors must emphasize continuous monitoring and reassessment of relevant implications in navigating the economic climate following Russia’s invasion of Ukraine, according to guidance from the Public Company Accounting Oversight Board.