Accounting & Auditing


DOJ building

Ex-Iconix CEO found guilty of accounting fraud

2022-11-29T20:11:00+00:00By

Neil Cole, the former CEO of Iconix Brand Group, faces possible jail time after his conviction of fraudulently inflating the brand management company’s revenue and misleading investors and auditors.

Unisys

Unisys: Probe identified ‘material weaknesses’ in disclosure controls

2022-11-22T20:47:00+00:00By

IT services company Unisys Corp. revealed the discovery of faults in its internal control over financial reporting, including involving its compliance functions, following an internal investigation it first disclosed earlier this month.

NFT

Navigating using NFTs in business applications

2022-11-16T16:33:00+00:00By

Non-fungible tokens can take many forms. There are potential business applications already in use, and many more are being developed as technology evolves.

DOJ wall

Ex-CEO at NS8 imprisoned 5 years, to forfeit $17.5M for fabricating revenue

2022-11-04T18:28:00+00:00By

The co-founder of NS8, a cyber-fraud prevention company, was sentenced to five years in prison and ordered to forfeit $17.5 million for defrauding investors of more than $100 million, the Department of Justice announced.

SEC office

SEC orders Koppers Holdings to pay $1.3M for disclosure failures

2022-11-01T16:35:00+00:00By

Koppers will pay $1.3 million to the Securities and Exchange Commission to settle allegations it failed to disclose material information about its debt in fiscal year 2019.

ESG

KPMG finds large companies ‘on the precipice of a new era’ of ESG reporting

2022-11-01T13:09:00+00:00By

Sustainability reporting has seen steady growth over the past three decades while overall perspectives about environmental, social, and governance reporting have seen dramatic shifts, according to the latest findings of KPMG’s Global Sustainability Report.

Business stamp

Survey: How businesses are confronting governmental licenses in M&As

2022-10-27T17:30:00+01:00By

The results of a recent survey conducted by Compliance Week and Avalara found most businesses consider governmental licenses as part of due diligence efforts during mergers and acquisitions, yet the opportunity for risk management improvements remains.

SECcrop

SEC passes Dodd-Frank executive pay clawback rule

2022-10-26T18:33:00+01:00By

The Securities and Exchange Commission passed a rule to require public companies to recover incentive-based compensation doled out to current and former executives up to three years before issuing an accounting restatement.

Cronos

Cronos avoids fine in SEC settlement over accounting errors

2022-10-25T19:06:00+01:00By

Canadian cannabis company Cronos Group and its former chief commercial officer each avoided fines in reaching settlements with the Securities and Exchange Commission over alleged accounting fraud.

Bitcoin business

Impact of FASB measuring crypto assets at fair value

2022-10-25T13:00:00+01:00By

The Financial Accounting Standards Board tentatively decided to require crypto assets that are in scope to be measured at fair value. Experts discuss the evolving ramifications of the project.

Mattel

Mattel fined $3.5M over accounting misstatements; ex-PwC partner could face discipline

2022-10-24T18:50:00+01:00By

The Securities and Exchange Commission fined Mattel $3.5 million for allegedly overstating tax expenses and initiated litigation against a former PwC partner accused of failing to inform the toy company’s audit committee about its financial statement errors.

KPMG

KPMG affiliates fined $275K for using unregistered firms

2022-10-19T20:39:00+01:00By

Three affiliates of KPMG agreed to pay a total of $275,000 in penalties for failing to disclose unregistered firm participation in public company audits—the latest such PCAOB enforcement cases for the global accounting firm.

Auditinspection

Spielman Koenigsberg & Parker partner fined record $150K for misleading PCAOB

2022-10-18T19:39:00+01:00By

Jonathan Taylor, an audit partner at accounting firm Spielman Koenigsberg & Parker, agreed to pay a record $150,000 fine handed down by the Public Company Accounting Oversight Board for misleading its investigators over the course of multiple inspections.

avalara300x200

CPE Webcast: How businesses are confronting governmental licenses in M&As

2022-10-13T14:00:00+01:00Provided by Avalara

If you are counting on operating your acquired locations on Day 1, selling new products on Day 2, and keeping your distribution and supply chain functional on Day 3 and beyond, you better be confident the business licenses owned and maintained by your acquired entity are up to date.

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SEC official advises auditors shift mindset on fraud detection

2022-10-12T19:50:00+01:00By

Paul Munter, acting chief accountant at the Securities and Exchange Commission, issued a statement highlighting auditors’ responsibilities in fighting fraud, including his office’s recent observations of shortcomings in the area.

Accounting

Need to know: FASB requires supplier finance program disclosures

2022-10-11T17:55:00+01:00By

The Financial Accounting Standards Board added new disclosure requirements for buyers of goods and services intended to increase transparency about how they use supplier finance programs.

Mazars

​FRC probing Mazars audit of Studio Retail Group

2022-10-06T17:14:00+01:00By

The U.K. Financial Reporting Council announced it opened an investigation into accounting firm Mazars regarding its audit of financial statements at Studio Retail Group.

complysci 300x200

CPE Webcast: How to leverage compliance solutions to prepare and remain compliant

2022-10-06T14:00:00+01:00Provided by

Whether routine or for cause, your compliance program will undoubtedly face a regulatory audit or examination. Are you prepared?

AuditResources

PCAOB fines 4 firms for failing to identify who led, participated in audits

2022-10-05T16:35:00+01:00By

The Public Company Accounting Oversight Board penalized four audit firms for failing to disclose who led specific audits for their firms and whether any other firms were involved in those audits.

Audit

​AA study: Total audit fees rise in 2021

2022-10-05T14:35:00+01:00By

Total audit fees increased in fiscal year 2021 as the number of Securities and Exchange Commission registrants reached its highest total in six years, according to the latest annual review from Audit Analytics.

RSM

RSM to pay $3.75M to settle improper conduct charges

2022-09-30T17:51:00+01:00By

Audit firm RSM and three of its senior-level employees were charged with improper professional conduct by the SEC for signing off on inflated revenues logged by public company Revolution Lighting Technology over four fiscal years of audits.

Tupperware Brands

Tupperware Brands fined $900K for accounting failures at Mexico unit

2022-09-30T16:44:00+01:00By

Tupperware Brands Corp. agreed to pay $900,000 to settle SEC charges of failing to maintain sufficient internal accounting controls and keep accurate books and records at its Mexico affiliate.

Barclays

Barclays to pay $361M to resolve sales of unregistered securities

2022-09-29T21:44:00+01:00By

Barclays PLC and Barclays Bank agreed to pay $361 million to resolve allegations from the SEC the bank failed to implement internal controls to track the sale of $17.7 billion worth of unregistered securities transactions.

Deloitte

Deloitte China fined $20M for ‘basic’ audit standard violations

2022-09-29T20:36:00+01:00By

The Chinese affiliate of Big Four audit firm Deloitte agreed to pay a $20 million penalty and undertake extensive remedial measures as part of a settlement with the SEC for audit failures that included asking clients to conduct their own audit work.

Hodge_opinion

Clarity lacking in tribunal report on KPMG’s Carillion, Regenersis failings

2022-09-28T11:54:00+01:00By

The release of the independent tribunal report into the misconduct of KPMG and five of its former employees for falsifying information in the audits of Carillion and Regenersis provides further details about how the work was doctored—but not why.

ESG_Wheel_Web

ESG Summit: Adapting businesses should look beyond what is financially material

2022-09-27T13:25:00+01:00By

Christopher Geiger, vice president of internal audit and enterprise risk at Lockheed Martin, explained how businesses must form resilience as they prepare for future risks regarding environmental, social, and governance during CW’s virtual ESG Summit.

SEC office

Compass Minerals fined $12M for disclosure control lapses

2022-09-26T17:31:00+01:00By

Compass Minerals International, a Kansas-based mining company, agreed to pay a $12 million fine to the Securities and Exchange Commission to resolve allegations deficiencies in its disclosure controls led to failures at facilities it operates in Canada and Brazil.

Accounting fraud

Friedman to pay $1.5M for missed red flags in 2 audits

2022-09-26T17:03:00+01:00By

Accounting firm Friedman will pay more than $1.5 million to settle charges it failed to comply with the standards of the Public Company Accounting Oversight Board while auditing two companies.

EY

Former EY director to pay $24K for insider trading

2022-09-23T19:45:00+01:00By

Michael Weiss, a former Ernst & Young business development director, agreed to pay $23,900 to settle charges levied by the Securities and Exchange Commission he engaged in insider trading.

PwC appoints global ESG leader

2022-09-23T15:04:00+01:00By CW Staff

Big Four audit firm PwC announced the appointment of Will Jackson-Moore as global environmental, social, and governance (ESG) leader.

Nicodemus_opinion

Collateral damage aplenty in NYAG lawsuit against Trump Organization

2022-09-22T22:08:00+01:00By

The New York Attorney General’s lawsuit against former President Donald Trump is solely focused on penalizing his business and cohorts, but firms like Mazars and Deutsche Bank don’t come off well from a due diligence perspective.

AuditTransparency

Hay & Watson loses PCAOB registration over altered audit docs

2022-09-14T16:32:00+01:00By

Canadian public accounting firm Hay & Watson had its registration permanently revoked and must jointly pay a fine of $50,000 along with its owner for violating Public Company Accounting Oversight Board rules and standards and failing to cooperate with an inspection.

VMware

VMware to pay $8M to settle SEC charges over misleading financials

2022-09-13T19:06:00+01:00By

Cloud services provider VMware will pay $8 million to settle allegations from the Securities and Exchange Commission it misled investors by hiding its lagging financial performance.

blackline 300x200

CPE Webcast: Today’s must-have accounting skills for tomorrow’s growth

2022-09-13T14:00:00+01:00Provided by

Amid fierce competition and ongoing disruption, accounting and finance leaders play an increasingly critical role: providing vital consultancy, analysis, planning, and due diligence to ensure sound decision-making.

Happy Hour

PwC lawsuit prompts reconsideration of after-hour work events

2022-09-12T19:05:00+01:00By

Big Four audit firm PwC is being sued by one of its employees for more than £200,000 (U.S. $234,000) after he injured himself at a post-work drink event in 2019. The incident is not the first where “team-bonding” efforts have proven problematic.

SEC building

SEC warns auditors of risks in taking on Chinese clients

2022-09-07T19:02:00+01:00By

U.S.-based audit firms seeking new public company clients in China should ensure they have full access to previous audits and work papers before taking the job or risk potential enforcement, the acting chief accountant at the Securities and Exchange Commission warned.

SECBooks

CHS avoids fine in SEC accounting fraud case

2022-09-02T16:04:00+01:00By

Minnesota-based agricultural cooperative CHS settled charges levied by the Securities and Exchange Commission that the company violated federal securities laws when it filed materially false financial statements with the agency over five years.

KPMG building

KPMG South Africa, two partners fined $275K for using unregistered firm

2022-08-30T18:24:00+01:00By

The Public Company Accounting Oversight Board fined KPMG South Africa and two of its partners a total of $275,000 for supervisory failures and violation of accounting rules related to the use of an unregistered accounting firm.

Accounting

Workforce changes impacting accounting and finance recruitment, retention efforts

2022-08-30T17:48:00+01:00By

More than 80 percent of public companies reported accounting and finance talent retention issues over the past 12 months, according to a Deloitte Center for Controllership webcast poll.

PPG

SEC fines ex-PPG controller $100K over accounting improprieties

2022-08-29T19:44:00+01:00By

The Securities and Exchange Commission ordered Mark Kelly, the former principal accounting officer and controller at PPG, to pay $100,000 for accounting improprieties aimed at inflating the painting supply company’s earnings per share.

SEC

Taronis Fuels to pay $5.1M in SEC fraud settlement

2022-08-26T20:31:00+01:00By

Industrial gas and water products manufacturer Taronis Fuels agreed to pay $5.1 million to settle fraud charges levied by the Securities and Exchange Commission.

Construction site

Granite Construction fined $12M over exec accounting fraud scheme

2022-08-26T20:10:00+01:00By

California-based civil engineering and infrastructure firm Granite Construction agreed to pay $12 million to settle Securities and Exchange Commission charges alleging fraud related to inflation of the company’s financial performance.

Auditinspection

SEC censures Farber Hass Hurley over accounting exam deficiencies

2022-08-26T16:31:00+01:00By

California-based accounting firm Farber Hass Hurley and two of its partners settled charges with the Securities and Exchange Commission alleging “repeated failures” in conducting custody examinations for two SEC-registered investment advisers.

China stocks

‘A step in the process’: PCAOB, China agree on U.S. audit access

2022-08-26T14:19:00+01:00By

U.S. audit regulators are set to end yearslong inspection barriers to the work of public accounting firms headquartered in mainland China and Hong Kong after the Public Company Accounting Oversight Board reached agreement with Chinese regulators on a new access framework.

Future plans

PCAOB forecasts stricter oversight in five-year strategy

2022-08-19T12:00:00+01:00By

The Public Company Accounting Oversight Board issued its draft five-year strategic plan for public comment. Areas of focus include enhancing audit inspections, strengthening enforcement, and more.

KPMG

KPMG Korea fined $350K for audit procedure failures

2022-08-17T16:34:00+01:00By

The Korean affiliate of Big Four audit firm KPMG was fined $350,000 by the Public Company Accounting Oversight Board for failures in its quality control policies and procedures to protect against improper alterations of work papers.

Eagle Bank

EagleBank fined $23M over improper lending, disclosure practices

2022-08-17T15:27:00+01:00By

EagleBank agreed to pay nearly $23 million in penalties for improperly loaning approximately $90 million to family trusts controlled by its former CEO over three years, then misleading investors about the loans.

SOX_Web

Sarbanes-Oxley 20th anniversary: Time to revisit SOX programs

2022-08-12T12:00:00+01:00By

Twenty years ago, in the aftermath of the Enron and WorldCom financial reporting scandals, Congress acted and created the Sarbanes-Oxley Act of 2002. Such a milestone anniversary marks a good time for organizations to refresh, rethink, and modernize their SOX programs.

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.