Accounting & Auditing


KPMG

Ex-KPMG exec avoids prison in final cheating scandal sentencing

2020-12-03T15:50:00+00:00By

Former KPMG inspections leader Thomas Whittle was sentenced to two years of supervised release for his role in the Big Four firm’s cheating scandal that saw three of his colleagues and co-conspirators receive time behind bars.

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Congress passes bill forcing Chinese companies to comply with U.S. audit rules

2020-12-03T00:17:00+00:00By

In a bipartisan and unanimous vote, the House passed a bill Wednesday that could kick publicly traded Chinese-based companies off U.S. exchanges.

Coronavirus look ahead

Gartner report: How coronavirus has altered audit risks for 2021

2020-12-02T21:30:00+00:00By

The coronavirus pandemic has dramatically altered the risk landscape for chief audit executives and audit departments by exacerbating long-standing risks while giving rise to new ones, a new report by research and advisory firm Gartner finds.

AuditOpinionFeature

Report shows Big Four stranglehold in U.K. near unavoidable

2020-12-02T21:10:00+00:00By

A review by the U.K. Financial Reporting Council found large companies will instinctively hire a Big Four firm as auditor, despite efforts by the regulator to break their dominance and open up the country’s audit market to smaller competitors.

Car dealership

Lookers discloses $60.5M loss following accounting fraud probe

2020-11-30T19:41:00+00:00By

After delaying for eight months its 2019 audited financial statements, U.K. car dealership chain Lookers has disclosed a £45.5 million (U.S. $60.5 million) loss following discovery of accounting fraud by a former employee.

Clocks

U.S. regs urge banks to transition from LIBOR ‘as soon as practicable’

2020-11-30T19:17:00+00:00By

U.S. banking regulators are encouraging financial institutions to stop entering into new contracts that use the U.S. dollar LIBOR as a reference rate ahead of its slated expiration at the end of 2021.

PCAOB

​PCAOB to adopt SEC auditor independence updates

2020-11-20T22:12:00+00:00By

The Public Company Accounting Oversight Board will adopt amendments to its independence standards to align with recent updates initiated by the Securities and Exchange Commission.

Accounting

Things to consider for companies preparing for 2020 year-end audits

2020-11-13T19:54:00+00:00By

It’s no surprise that in a year like no other, there are a number of factors to consider for year-end audits that you might not be used to thinking about.

Accounting computer

FASB delays, eases early adoption for long-duration insurance standard

2020-11-06T21:10:00+00:00By

The Financial Accounting Standards Board finalized an update to its standard on accounting for long-duration contracts at insurance companies that will delay the effective date by one year and ease compliance burdens for early adopters.

Cyber risk

Audit committee best practices for understanding and acting on cyber-threats

2020-11-05T20:44:00+00:00By

Cyber-security risk oversight is the area with the greatest increase in audit committee disclosures in proxy statements, so you better make sure you’ve got a handle on understanding your responsibilities.

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ESMA review slams German authorities’ supervision of Wirecard

2020-11-04T20:48:00+00:00By

A damning report by the EU’s securities markets regulator found numerous shortcomings in German authorities’ supervision of Wirecard’s financial reporting leading up to its collapse surrounding a $2 billion accounting scandal.

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JPMorgan Chase facing potential fine for internal control deficiencies

2020-11-04T19:04:00+00:00By

A subsidiary of JPMorgan Chase is facing a potential civil penalty “related to historical deficiencies in internal controls and internal audit over certain advisory and other activities.”

KPMG building

California accounting board fines KPMG $1.3M for cheating scandal

2020-11-03T17:12:00+00:00By

California and its Board of Accountancy has fined audit firm KPMG $1.3 million after elements of its inspection and internal exam cheating scandals were run through the state.

GrantThornton

FRC: Major audit quality at Grant Thornton UK, Mazars ‘unacceptable’

2020-10-30T16:04:00+00:00By

The U.K. Financial Reporting Council has singled out audit firms Grant Thornton and Mazars as needing to significantly improve audit quality in the wake of recent inspection findings.

leaseaccelerator cover img

White paper: 15 Critical Success Factors for Your Equipment Leasing Program

2020-10-30T14:58:00+00:00Provided by

Equipment leasing, when managed effectively, can offer a number of strategic financial and competitive benefits to your business.

GE

GE reserves $100M for potential SEC accounting enforcement

2020-10-29T18:39:00+00:00By

General Electric has set aside $100 million relating to a potential SEC enforcement action that could encompass several areas of alleged accounting failures.

WorkivaThreLineseBook

e-Book: IIA Three Lines Model: Reading between the lines

2020-10-27T06:15:00+00:00Provided by

This e-Book has the results of a recent joint survey between Compliance Week and Workiva, which show companies could benefit from the IIA’s updated Three Lines Model—especially in light of the pandemic.

AccountingProbe

FRC pushes for clarity on audit’s role in finding fraud

2020-10-23T16:54:00+01:00By

The proposed changes reflect regulatory fears that U.K. companies will be tempted to hide the scale of their financial losses as the effects of the coronavirus pandemic continue to dent balance sheets.

AccountingUpdateFeature

FASB proposes three amendments to leases standard

2020-10-21T19:40:00+01:00By

The Financial Accounting Standards Board proposed three amendments to its leases standard prompted by post-implementation feedback from stakeholders.

Audit

How auditors can help companies with non-GAAP measures, KPIs

2020-10-21T15:28:00+01:00By

A new report from the Center for Audit Quality includes key questions audit committee members can ask to fulfill their oversight responsibilities as they discuss non-GAAP financial measures and KPIs with management and auditors.

CoronavirusQuestions

CAMs, coronavirus highlight audit committee transparency report

2020-10-20T16:33:00+01:00By

The 2020 Audit Committee Transparency Barometer, an annual report issued by the CAQ and Audit Analytics, explores new disclosure trends related to the coronavirus pandemic and critical audit matters.

PCAOB

Chief Auditor Zietsman to join PCAOB board

2020-10-19T17:50:00+01:00By Scuttlebutt

The Securities and Exchange Commission announced changes to the Public Company Accounting Oversight Board, including the appointment of Megan Zietsman as a board member for a term ending in October 2025.

SECcrop

Split SEC loosens conflict-of-interest rules for independent auditors

2020-10-19T16:54:00+01:00By

The Securities and Exchange Commission has moved forward with relaxing its conflict-of-interest rules for independent auditors by a 3-2 vote.

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Webcast: Innovations emerge as internal audit adapts

2020-10-15T14:00:00+01:00Provided by

COVID-19 has undoubtably presented new challenges for companies around the world. Most were required to rapidly shift to remote work environments, and some have even had to adjust their business models.

KPMG

Ex-KPMG partner avoids prison in cheating scandal sentencing

2020-10-13T20:10:00+01:00By

Former KPMG partner David Britt has been sentenced to six months of home confinement for his role in a cheating scandal that has haunted the Big Four audit firm for two years and is now finally nearing its end.

SEC

SAExploration accused of $100M accounting fraud

2020-10-09T16:08:00+01:00By

SAExploration Holdings has been accused by the SEC of perpetrating a $100 million accounting fraud that involved routing payments through shell companies so it appeared to be legitimate revenue.

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U.S. agencies get nod for using data, smart incentives in enforcement

2020-10-08T17:17:00+01:00By Compliance Week

Both the CFTC and CFPB “Nailed It” this week while corporate heavyweight General Electric found itself in more trouble.

GeneralElectric

GE facing potential SEC action over accounting issues

2020-10-07T14:14:00+01:00By

General Electric revealed in a regulatory filing that it is facing a civil injunctive action from the Securities and Exchange Commission regarding accounting issues tied to its legacy insurance portfolio.

AccountingCoronavirus

Deloitte: Top-of-mind challenges for Q3 financial reporting

2020-10-05T16:25:00+01:00By

A new report from Deloitte highlights third-quarter financial reporting and accounting challenges that should be top of mind as the coronavirus pandemic continues with no end in sight.

Nailedit1200x800

EY allegedly flubbed Wirecard dealings worse than we thought

2020-10-02T17:05:00+01:00By Compliance Week

In this week’s “Nailed It or Failed It,” we take down EY and JPMorgan Chase for apparently ignoring whistleblowers and give the SEC a nod for rewarding them.

HP

HP fined $6M for disclosure violations and control failures

2020-10-01T20:08:00+01:00By

HP has agreed to pay $6 million in a settlement with the Securities and Exchange Commission to resolve allegations of disclosure violations and control failures regarding improper sales practices.

Brian Miller

‘Audit in Action’: BDO partner shares data analytics journey

2020-10-01T19:42:00+01:00By

Brian Miller, national partner of audit transformation and innovation at BDO USA, talked with Compliance Week about how the pandemic has driven adoption of technologies by BDO’s auditors.

Accounting fraud

SEC charges Manitex, three former execs with accounting fraud

2020-09-30T15:54:00+01:00By

The SEC has brought charges against Manitex International and three of its former senior executives for engaging in accounting fraud that resulted in the issuance of materially misstated financial statements.

Emissions

Fiat Chrysler fined $9.5M for ‘misleading disclosures’ on diesel emissions

2020-09-29T16:38:00+01:00By

Fiat Chrysler Automobiles has agreed to pay $9.5 million to settle allegations from the SEC that it made “misleading disclosures” regarding an internal audit of emission control systems for diesel vehicles it sold in the United States.

Stock data

Two companies charged in landmark SEC data analytics cases

2020-09-28T19:38:00+01:00By

A new risk-based data analytics initiative at the SEC has been credited for forming the basis of charges against two publicly traded companies for improper reporting of quarterly earnings per share.

Three Lines

Survey: Practitioners weigh in on IIA’s new Three Lines Model

2020-09-28T19:07:00+01:00By

A look at results from a joint survey from Compliance Week and Workiva reveals companies could benefit from a deep dive into the IIA’s new Three Lines Model, especially in light of the recent pandemic.

Whistle

Internal whistleblower exposes fraud at Illinois engine manufacturer

2020-09-25T18:40:00+01:00By

An internal whistleblower exposed a scheme by three executives of a Chicago-area engine manufacturer to improperly inflate revenue and cover their tracks by lying to company accountants and independent counsel.

LightbulbOut

Lighting company, four executives fined for improperly booking revenue

2020-09-25T16:21:00+01:00By

A Connecticut industrial lighting company has been fined $1.25 million by the SEC for falsely booking $55 million worth of sales on its financial statements over four years. Four company executives have been fined as well.

LeasesSurvey

Takeaways from FASB leases roundtable

2020-09-23T14:50:00+01:00By

FASB held a public roundtable on implementation of the new lease accounting standard, discussing technical issues that are challenging for practitioners and where additional or amended guidance might be needed.

luckin

Chinese regulator fines Luckin Coffee, affiliated groups $9M

2020-09-22T17:49:00+01:00By

China’s market competition regulator announced a fine of 61 million yuan (U.S. $9 million) against Luckin Coffee and a group of affiliated firms in response to the coffee chain’s inflated sales scandal.

Deloitte

FRC fines Deloitte record $19.4M for Autonomy audit failures

2020-09-17T18:53:00+01:00By

The U.K. Financial Reporting Council fined Deloitte a record £15 million (U.S. $19.4 million) for numerous findings of misconduct regarding past audits of British software company Autonomy Corporation.

EY

EY chairman: Auditors should work harder to find fraud

2020-09-15T20:31:00+01:00By

The chairman and chief executive of Big Four auditing firm EY says auditors should do more to uncover fraud while conducting external audits, a topic the industry has historically been reluctant to tackle.

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CPE Webcast: Ground rules for ensuring SOX compliance from anywhere

2020-09-15T14:00:00+01:00Provided by

The ramifications of the coronavirus crisis will long outlast it—including how companies will close the books and ensure SOX compliance and where accounting and audit staff who perform these tasks will be located.

AuditResources

PCAOB adds independence, evidence projects to agenda

2020-09-09T16:54:00+01:00By

The Public Company Accounting Oversight Board has added projects regarding auditor independence and audit evidence to its research and standard-setting agendas.

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e-Book: Agile Lease Accounting During Uncertain Times

2020-09-09T05:42:00+01:00Provided by

This e-Book from Visual Lease and Compliance Week reveals how the coronavirus pandemic has impacted corporate leases.

Trending down

Report: 2019 restatements at 19-year low; revenue still top issue

2020-09-08T17:59:00+01:00By

According to Audit Analytics’ latest annual restatement study, the total number of restatements dropped for the fifth consecutive year to a 19-year low of 484, with revenue recognition still the biggest driver.

FBI

FBI reforms compliance procedures, to establish new audit office

2020-09-02T17:24:00+01:00By

Compliance reforms set to take place at the FBI include enhanced training and oversight mechanisms and a newly created office to carry out “rigorous and robust auditing.”

Samsung

Samsung heir indicted on market manipulation, accounting fraud charges

2020-09-01T15:36:00+01:00By

Lee Jae-yong, the heir and de facto leader at Samsung, was indicted by South Korean prosecutors on charges related to a 2015 merger of two subsidiaries and alleged irregularities in accounting practices at another subsidiary.

KPMG

An auditor’s perspective on big client turnover

2020-08-31T19:03:00+01:00By

An audit growth leader at KPMG shares his perspective on the process of public company auditor changes in the wake of GE’s decision to transition to working with Deloitte.

woods

What the Wirecard story tells us about red flags, healthy skepticism

2020-08-28T16:51:00+01:00By

How we came to learn about the fraud allegedly perpetrated by Wirecard offers important lessons in compliance and corporate governance, writes financial crime expert Martin Woods.