Accounting & Auditing


EY

EY Germany changes leadership in wake of Wirecard scandal

2021-02-25T20:14:00+00:00By

Hubert Barth, head of EY’s Germany practice for the past five years, will step down and take on a “new role at the European level” as the firm seeks to restore its tarnished reputation following its missteps leading up to the collapse of Wirecard.

KPMG

Former KPMG auditors suspended for improper conduct during college audit

2021-02-23T19:53:00+00:00By

Former KPMG Partner Christopher Stanley and Senior Manager Jennifer Stewart were suspended by the SEC for improper professional conduct during an audit of the now-defunct College of New Rochelle.

KPMG building

KPMG UK chair resigns over controversial pandemic remarks

2021-02-12T19:40:00+00:00By

KPMG UK Chairman Bill Michael has resigned after controversial remarks he made about the coronavirus pandemic during a virtual town hall meeting offended several employees and were subsequently made public.

woods

James Freis did the right thing at Wirecard … but why didn’t anyone else?

2021-02-12T18:21:00+00:00By

At the end of the sorry Wirecard saga, James Freis may be one of the very few former senior employees who can hold his head high, writes Martin Woods.

AdobeStock_315336035

FASB advances goodwill triggering event standard update

2021-02-12T17:51:00+00:00By

The Financial Accounting Standards Board ruled tentatively to move forward with and expand the scope of its proposed standard update regarding goodwill triggering events under Topic 350. The standard is expected to be finalized in March.

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Video: Wirecard’s failings back in spotlight

2021-02-11T21:40:00+00:00By Compliance Week

Jaclyn Jaeger lauds two oil companies for raising the bar on ESG commitment in the industry, while Dave Lefort assesses new developments in the Wirecard saga that point to greater failures in the firm’s internal controls.

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CPE Webcast: Advancing the audit despite disruption

2021-02-11T12:00:00+00:00Provided by

There’s no question that F&A teams have been disrupted by the ongoing pandemic. In fact, nearly half of respondents in a recent survey said that closing virtually with a distributed workforce impacts the audit and other third-party engagements.

PCAOB 2019 inspections Big Four

PCAOB 2019 inspection reports: Deloitte still tops; PwC deficiency rate rises again

2021-02-08T21:52:00+00:00By

Three of the Big Four audit firms—Deloitte, EY, and KPMG—improved their year-over-year deficiency percentage in the PCAOB’s 2019 inspection reports, while PwC’s deficiency rate increased for the third straight year.

SEChq

Former WageWorks CEO, CFO settle SEC accounting violation charges

2021-02-03T17:04:00+00:00By

The Securities and Exchange Commission charged two former executives of WageWorks with making false and misleading statements and omissions that resulted in the improper recognition of $3.6 million in revenue.

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CPE Webcast: Building for SOC 2 compliance

2021-02-02T14:00:00+00:00Provided by

For many companies, SOC 2 Compliance can be an unexpected requirement to work with a big new client. This complex, time-consuming compliance effort is often much more costly than business leaders expect, and can easily lead to more hiring, delayed product launches, and slow business growth.

Anthony Pugilese

Incoming IIA chief Anthony Pugliese to prioritize technology, D&I

2021-02-01T14:00:00+00:00By

Compliance Week caught up with Anthony Pugliese, the incoming president and chief executive officer of the Institute of Internal Auditors, to discuss his plans for the future of the IIA and the internal audit profession at large.

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Lease Accounting Solution Transition (LAST) Planner

2021-01-27T12:43:00+00:00Provided by

Did you rush to meet lease accounting requirements (ASC 842, IFRS 16) in time for the compliance deadline? You’re not alone.

J. Robert Brown to depart PCAOB board

2021-01-13T20:45:00+00:00By Scuttlebutt

The Public Company Accounting Oversight Board announced J. Robert Brown Jr. will conclude his service on the Board this month.

steotia

SEC Chief Accountant Sagar Teotia to depart

2021-01-13T16:41:00+00:00By

SEC Chief Accountant Sagar Teotia joins the growing list of senior officials at the agency set to depart amid the presidential transition to the Biden administration.

Accounting fraud

Common themes from financial statement fraud SEC enforcement actions

2021-01-12T18:33:00+00:00By

A new report from the Anti-Fraud Collaboration analyzes the most common financial statement fraud themes noted in SEC enforcement actions and offers insights to mitigate the top risk areas.

Audit

New IAASB standards tackle audit quality management

2021-01-04T20:08:00+00:00By

The International Auditing and Assurance Standards Board has issued a trio of new and revised standards intended to strengthen and modernize the way audit firms on an international level approach quality management.

SEChq

RPM, chief compliance officer to pay $2M for accounting violations

2020-12-28T15:01:00+00:00By

RPM International and its general counsel and chief compliance officer have agreed to a $2 million settlement with the SEC for accounting and disclosure rules violations relating to a prior DOJ investigation.

AccountingUpdateFeature

FASB proposes goodwill alternative for certain private companies, nonprofits

2020-12-22T18:44:00+00:00By

The Financial Accounting Standards Board proposed a standard update to provide an accounting alternative to the goodwill triggering event assessment for certain private companies and nonprofit organizations.

Auditcommunication

CAQ review: Little surprises in Year 1 of CAM reporting

2020-12-22T16:33:00+00:00By

The Center for Audit Quality released its review of the first year of auditor reports for over 2,000 large accelerated filers that included the PCAOB’s new critical audit matters requirements.

China

SEC, China react as Trump approves foreign audit oversight bill

2020-12-21T17:29:00+00:00By

President Donald Trump signed into law a measure that will kick publicly traded Chinese companies off U.S.-based exchanges if they refuse to allow U.S. regulators to examine their finances.

SEC

EY member firm fined $1.5M for failure to uncover $3B homebuilding fraud

2020-12-18T16:35:00+00:00By

A member firm of EY Global has been fined $1.5 million by the SEC to settle audit violations and improper conduct charges connected to a $3.3 billion accounting fraud committed by one of its customers.

Luckin Coffee

Luckin Coffee to pay $180M for accounting fraud

2020-12-17T19:44:00+00:00By

China-based Luckin Coffee has agreed to a $180 million penalty as part of a settlement with the U.S. Securities and Exchange Commission to resolve charges related to the coffee chain’s inflated-sales scandal.

Richard Jones

FASB Chair Jones projects pandemic challenges to persist in 2021

2020-12-15T20:27:00+00:00By

New FASB Chairman Richard Jones said in a recent speech that he believes accounting challenges from the coronavirus pandemic won’t go away soon, with his organization poised to address new issues as they arise.

Whistle

Audit whistleblower receives $300K in rare SEC award

2020-12-15T16:40:00+00:00By

The Securities and Exchange Commission announced the award of $300,000 to a whistleblower with audit-related responsibilities, a rarity for the program.

PCAOB

PCAOB reviews a year like no other, previews what lies ahead in 2021

2020-12-14T21:58:00+00:00By

PCAOB board members remark on changes at the organization amid the coronavirus pandemic, recent audit inspection findings, priorities for 2021, and more.

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SEC charges Sequential Brands for goodwill impairment failures

2020-12-14T17:46:00+00:00By

The SEC has filed a civil complaint against brand-management company Sequential Brands Group for ignoring “clear, objective evidence of likely goodwill impairment.”

Deutsche

Reports: Ex-EY partner steps aside as Deutsche exec amid Wirecard probe

2020-12-11T17:05:00+00:00By

A former EY partner is reportedly relinquishing his position as Deutsche Bank’s head of accounting temporarily after German prosecutors launched an investigation into his role as a lead auditor for Wirecard.

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White paper: ASC 842 Lease Accounting Standard Handbook

2020-12-11T08:20:00+00:00Provided by

Even though your deadline for complying may have moved out, it is time to start getting your organization ready to meet the new ASC 842 compliance standard for private organizations.

Sagar Teotia

SEC accounting office acknowledges challenging year for auditors

2020-12-10T17:57:00+00:00By

Among other things, the SEC’s chief accountant discussed activities relating to public company financial reporting, accounting and auditing policy updates, and financial reporting considerations related to COVID-19 at a conference this week.

General Electric

GE settles SEC accounting probe for $200M

2020-12-10T17:36:00+00:00By

General Electric agreed to pay $200 million to settle charges brought by the Securities and Exchange Commission regarding a series of accounting violations at its power and insurance businesses.

Compliance fails

Top ethics and compliance failures of 2020

2020-12-08T13:30:00+00:00By

From a massive accounting fraud scandal in Germany to deceitful consumer tactics among China-based companies to unethical practices on the environmental front in the United States—CW’s list of the top ethics and compliance failures of 2020 spans the globe.

Paul Sarbanes

Paul Sarbanes, co-author of SOX accounting law, dies at 87

2020-12-07T21:34:00+00:00By

Paul Sarbanes, the five-term U.S. Senator whose landmark law, the 2002 Sarbanes-Oxley Act, required more transparency in corporate financial reporting, died Sunday at age 87.

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.

Wirecard

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.

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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.