Accounting & Auditing


KPMG

KPMG fined $18M for ‘integrity and objectivity’ breaches in Silentnight sale

2021-08-05T18:14:00+01:00By

The Financial Reporting Council ordered KPMG to pay a £13 million (U.S. $18 million) fine for “breaches of the principles of integrity and objectivity” in its advisory role regarding the 2011 sale of mattress company Silentnight to U.S. private equity firm HIG Capital.

China scrutiny

SEC seeks more risk disclosures from China-based companies

2021-08-02T19:27:00+01:00By

The SEC will require China-based public companies listed on U.S. exchanges to make more disclosures about the financial risks posed by potential interference in their operations by the Chinese government.

EY

EY fined $10M for independence violations in Sealed Air engagement

2021-08-02T19:19:00+01:00By

EY has agreed to pay $10 million as part of a settlement with the SEC related to charges of auditor independence misconduct perpetrated by several partners of the Big Four firm to secure Sealed Air as a client.

KPMG building

Ex-KPMG partners barred by SEC over cheating scandal roles

2021-07-30T14:28:00+01:00By

David Britt and Thomas Whittle have been indefinitely barred from practicing as accountants before the Securities and Exchange Commission for their roles in the KPMG cheating scandal.

Whistleblower Day

Three ideas to improve the whistleblowing process

2021-07-30T13:00:00+01:00By

It’s important to take stock of how far whistleblowing has advanced over the last few years. That said, there is still room for improvement. Aaron Nicodemus offers three suggestions.

Jeffrey Smith

Part 5: Waiting for payout a grueling test of tenacity for whistleblowers

2021-07-30T13:00:00+01:00By

The road to a payout for whistleblowers is long, lonely, and full of obstacles. Commitment to the idea that they are doing the right thing helped our whistleblower subjects endure years of hardship to bring their cases to conclusion.

Andrew Russo

Part 4: Retaliation pervades while whistleblowers persevere

2021-07-29T13:00:00+01:00By

Retaliation for blowing the whistle comes in all kinds of forms. Our whistleblower subjects share their stories—from losing jobs to getting blacklisted to being the target of a newspaper hit piece.

Dee Dee Stone

Part 3: Blowing the whistle weighs uncertainty against moral duty

2021-07-28T13:00:00+01:00By

Once someone decides to blow the whistle, their life is forever changed. Their action stands to benefit many people they don’t even know while putting much in jeopardy on a personal level. Our whistleblower subjects each explain what led them to their determinations.

Brendan Delaney

Part 2: Internal reporting sends whistleblowers down path alone

2021-07-27T13:00:00+01:00By

Almost no one becomes a whistleblower by choice. A slow and steady whittling down of options often leads individuals to isolation in coming to their decision. Our whistleblower subjects share the roadblocks they faced in reporting internally.

ESGReporting

What companies (and the SEC) can learn from U.K. ESG reporting guidance

2021-07-26T16:39:00+01:00By

The U.K. Financial Reporting Council has proposed a series of measures from which companies—as well as other regulators like the SEC—could benefit as ESG disclosures receive closer scrutiny.

Aaron Westrick

Part 1: Finding the fraud launches whistleblowers on life-changing journey

2021-07-26T13:00:00+01:00By

Whistleblowers aren’t born—they’re made. For five individuals that have taken on that mantle, the story began with discovering a problem that could no longer be ignored.

KPMG

FRC 2020/21 audit inspections: KPMG rebuked over continued struggles

2021-07-23T15:28:00+01:00By

The U.K. Financial Reporting Council released the results of its 2020/21 audit quality inspections, in which it singled out KPMG for “unacceptable” deficiencies regarding the firm’s audits of banks and similar entities.

SEChq

ICFR failures cost Tandy Leather in SEC settlement

2021-07-21T16:28:00+01:00By

Tandy Leather Factory and its former CEO have agreed to pay a total of $225,000 as part of a settlement with the SEC to resolve charges of inaccurate financial reporting caused by a faulty inventory tracking system.

Lease accounting

FASB issues standard update for variable lease payments

2021-07-20T15:37:00+01:00By

The Financial Accounting Standards Board finalized an update to its leases standard targeting sales-type leases with variable lease payments.

Accounting fraud

Former FTE Networks CEO, CFO charged with accounting fraud

2021-07-15T17:05:00+01:00By

The former chief executive officer and chief financial officer of telecommunications company FTE Networks were arrested and charged with accounting fraud among a series of other alleged crimes.

Accountingbestpractices

Cherry Bekaert audit partner facing SEC scrutiny over MiMedx fraud case

2021-07-14T17:44:00+01:00By

The Securities and Exchange Commission is considering whether to pursue enforcement against a certified public accountant for his alleged role in an accounting fraud case the agency brought against biotech company MiMedx Group.

BlacklineFraudOnline

e-Book: Automate your accounting process: Wring out financial fraud

2021-07-06T18:32:00+01:00Provided by

A recent CW Webcast, sponsored by BlackLine and recapped here, discusses how automation can create a more efficient and effective approach to your accounting process.

Stock drop

Audit report: Assessing risk landscape for IPOs

2021-07-01T20:00:00+01:00By

An initial public offering presents significant opportunities for market participants that are accompanied by equally notable governance risks, new research from Audit Analytics explores.

Accounting fraud

Want to wring out fraud? Automate your accounting processes

2021-06-29T15:12:00+01:00By

What allows bad actors to perpetuate accounting fraud? In many cases, it’s bad processes and controls. Consider introducing automation to help your company more successfully detect and prevent bad actors.

PwC sign

PwC audit facing scrutiny amid Greensill collapse fallout

2021-06-28T17:05:00+01:00By

Big Four firm PwC is under investigation for its audit of Wyelands Bank as part of a larger U.K. review linked to the recent collapse of Greensill Capital.

Accounting trends

Study: Big Four audit hold still strong despite 2021 dip

2021-06-17T20:30:00+01:00By

The Big Four’s dominance on the public company audit market remains despite a slight dip in numbers in the last year, according to the latest research from Audit Analytics.

visuallease300x200

CPE Webcast: Sustainable lease accounting: Maintaining compliance through Day 2 and beyond

2021-06-15T14:00:00+01:00Provided by

When FASB and IASB first announced the lease accounting standards ASC 842 and IFRS 16, respectively, companies scrambled to pull together their lease data and implement procedures and tools to generate the required disclosures.

Gary Gensler_FSOC

SEC’s Gary Gensler stumps for SOFR, shares concerns with Bloomberg rate

2021-06-14T18:32:00+01:00By

SEC Chair Gary Gensler expressed his support for the Fed-backed Secured Overnight Financing Rate over the Bloomberg Short-Term Bank Yield Index, which he believes has similarities to LIBOR that could be manipulated.

Nicodemus_opinion

Hardball politics at play in leadership changes at PCAOB, CFPB

2021-06-08T19:48:00+01:00By

No federal agency is truly immune from politics—even the ones that are supposed to be independent. That is what’s playing out at the PCAOB and CFPB as Democrats utilize similar tactics coined by their Republican counterparts.

Priority list

What might an overhauled PCAOB look to accomplish?

2021-06-08T16:23:00+01:00By

With no requirements for the PCAOB to feature a certain number of members from each political party, the SEC has the chance to staff the organization with a decidedly Democratic majority. What might such a Board set out to change?

SEC office

SEC ousts PCAOB head William Duhnke; larger overhaul planned

2021-06-07T13:58:00+01:00By

SEC Chair Gary Gensler removed William Duhnke III as head of the PCAOB while also announcing plans to replace the entire board of the audit regulator.

AccountingCoronavirus

CECL roundtable explores implementation issues during COVID

2021-05-28T15:50:00+01:00By

How the Financial Accounting Standards Board’s CECL standard fared during the height of the pandemic and more were discussed as part of a virtual roundtable.

blackline 300x200

CPE Webcast: Understanding risks & compliance

2021-05-25T14:00:00+01:00Provided by

Are you keeping up with your organization’s evolving risk landscape, or are those risks keeping you up at night? Fraud and restatements are happening every day, and it’s important to recognize that your company is consistently exposed to risk.

Audit tech

Survey: Audit still facing hurdles with next-gen tech

2021-05-21T15:18:00+01:00By

Many senior audit leaders and their teams are still in the early stages of, or have not yet begun, implementing next-generation tools and strategies into their internal audits, according to a new survey.

Swiss Life

Swiss Life to pay $77.4M for tax evasion scheme

2021-05-17T16:18:00+01:00By

Swiss Life Holding and three of its subsidiaries entered a deferred prosecution agreement with the Justice Department and will pay $77.4 million for conspiring with U.S. taxpayers to conceal more than $1.4 billion in offshore insurance policies.

Accountingbestpractices

FASB proposes update to hedge accounting layering method

2021-05-07T15:40:00+01:00By

The Financial Accounting Standards Board proposed an update designed to further align its derivatives and hedging standard with risk management strategies employed by organizations.

ArrowsUp

Study: SPACs surge shakes up first-quarter IPO market

2021-05-06T17:11:00+01:00By

Because of the recent SPACs craze, the first quarter of 2021 saw the highest IPO activity in U.S. markets in at least 20 years, according to Audit Analytics. David Bukzin, leader of the SPAC team at Marcum, provides context.

Blockchain

Risk matrix breaks down problem areas of blockchain technology

2021-05-05T18:13:00+01:00By

The use of blockchain technology brings with it a number of risks that prudent auditing and accounting professionals must smartly manage. It’s all described in a new risk matrix released jointly by the ISACA, AICPA, and CIMA.

Under Armour

Under Armour to pay $9M to settle SEC accounting probe

2021-05-04T14:33:00+01:00By

Under Armour agreed to pay $9 million to settle charges brought by the SEC concerning accounting practices by the sports apparel company that rendered statements it made misleading.

Chambers_index

Former IIA CEO Richard Chambers partners with AuditBoard

2021-05-03T16:02:00+01:00By

Richard Chambers, former president and CEO of the Institute of Internal Auditors, has partnered with AuditBoard as a senior internal audit advisor.

SECBooks

SEC settles with 8 companies over untimely reporting disclosures

2021-04-30T19:27:00+01:00By

The Securities and Exchange Commission announced settlements with eight companies for incomplete reporting related to “not timely” form disclosures.

United States Belgium

PCAOB reaches cooperative agreement with Belgian counterpart

2021-04-21T16:28:00+01:00By

The PCAOB has added Belgium to its list of countries with which it has a cooperative agreement to exchange information concerning the oversight of audit firms.

AccountingUpdateFeature

FASB advances targeted updates to leases standard

2021-04-16T16:22:00+01:00By

The Financial Accounting Standards Board has tentatively ruled to move forward with a pair of updates to its leases standard aimed at certain sales-type leases and discount rates for lessees.

PCAOB

Ex-PCAOB risk officer files lawsuit alleging harassment, discrimination

2021-04-13T17:42:00+01:00By

The former chief risk officer of the PCAOB says she was subjected to a campaign of harassment and discrimination before she was unlawfully fired last year.

New York Capitol

New York law provides LIBOR fallbacks as rate nears end

2021-04-09T16:00:00+01:00By

A new law in New York provides contracts that reference LIBOR with a fallback provision and safe harbor once the benchmark interest rate permanently ceases to be published at the end of the year.

Statistic analysis

Accounting considerations for companies merging with SPACs

2021-04-08T19:55:00+01:00By

The Securities and Exchange Commission recently reinforced its focus on the importance of corporate governance and financial reporting by special purpose acquisition companies (SPACs).

AuditCoronavirus

IIA survey: COVID-19 impact on internal audit smaller than expected

2021-04-05T17:08:00+01:00By

The impact of the coronavirus pandemic on internal audit was not nearly as severe as it was for organizations overall, states a new report from the Institute of Internal Auditors.

Accounting fraud

How might U.K. mandate for audit to find fraud work in practice?

2021-04-01T18:35:00+01:00By

Experts weigh in on the hurdles to be overcome and clarifications needed if U.K. auditors are going to be mandated to detect and prevent fraud as spelled out in new proposals.

Financial reporting

Study: Financial services leads way in COVID-related CAMs

2021-03-31T17:39:00+01:00By

More than a quarter of companies citing COVID-19 in their critical audit matters filed with the PCAOB are part of the financial services industry, according to research from Audit Analytics.

Accounting

​FASB finalizes goodwill triggering event standard update

2021-03-31T15:32:00+01:00By

The Financial Accounting Standards Board announced the adoption of an accounting standards update that provides an alternative for goodwill triggering event evaluation.

Federal Reserve

Enforcement an option as LIBOR deadline nears

2021-03-29T16:43:00+01:00By

Examiners from the Federal Reserve are being encouraged to consider supervisory actions against firms not ready to stop issuing LIBOR-based contracts by Dec. 31.

Accounting

Five key going concern considerations for 2021 reporting

2021-03-29T12:54:00+01:00By

Evaluating potential going concern issues was a hot topic for companies and their auditors in 2020. With first-quarter 2021 reporting around the corner, Maria Murphy offers five key considerations to be thinking about.

ChinaUS

SEC seeking comment on new foreign audit oversight rules

2021-03-24T18:43:00+00:00By

The SEC is seeking comment on new submission and disclosure rules related to foreign public companies that are not allowing U.S.-based auditors to review their financial statements.

Cyber-security

Internal audit’s role in cyber-security testing: Where to start

2021-03-22T18:00:00+00:00By

Nathan Anderson, senior director of internal audit at McDonald’s, discusses ways internal audit can better answer management questions about cyber-risks and become a more independent cyber-security testing function overall.

United Kingdom

U.K. government proposals spell out Big Four breakup, new audit responsibilities

2021-03-18T16:14:00+00:00By

The U.K. government has unveiled proposals designed to end the Big Four accounting firms’ dominance of the region’s audit market while also making companies and executives more directly accountable—and liable—for failures in corporate reporting.