Accounting & Auditing


DOJ

News Brief

DOJ orders Evoqua to pay $8.5M over admitted securities fraud

2024-05-16T18:52:00+01:00By

Evoqua Water Technologies agreed to pay $8.5 million as part of a nonprosecution agreement with the Department of Justice to settle admitted criminal charges related to fraudulent revenue recognition.

Lease accounting

Premium

SEC chief accountant calls out audit leadership culture

2024-05-15T18:52:00+01:00By

Staff at the Securities and Exchange Commission have observed instances of audit firms setting poor examples for junior-level employees by failing to properly discipline senior leaders found to have breached ethical standards, according to Chief Accountant Paul Munter.

Crowe

News Brief

Crowe U.K. dinged $181K by FRC for Aseana Properties audit failures

2024-05-14T16:30:00+01:00By

Crowe U.K. was assessed a penalty of £144,000 (U.S. $181,000) by the U.K. Financial Reporting Council for failures in its audit of Aseana Properties Limited’s financial statements for the year ended Dec. 31, 2019.

AuditAdvice

News Brief

PCAOB reestablishes its fundamentals with new standards

2024-05-14T15:30:00+01:00By

The Public Company Accounting Oversight Board adopted two new standards that address key audit areas upon which it was relying on benchmarks established more than 20 years ago.

Johnny Rockets

News Brief

FAT Brands on defense over DOJ, SEC accounting misconduct allegations

2024-05-13T17:22:00+01:00By

Restaurant operator FAT Brands said it would contest charges announced by the Department of Justice regarding violations of the Sarbanes-Oxley Act related to personal loans made to executive officers.

London business district

News Brief

FRC fines PwC, EY for London Capital & Finance audit failings

2024-05-07T18:58:00+01:00By

Big Four firms PwC and EY were each penalized by the Financial Reporting Council for alleged shortcomings during their respective audits at collapsed investment firm London Capital & Finance.

Accounting fraud

News Brief

‘Sham audit mill’: SEC fines, permanently suspends BF Borgers

2024-05-03T14:27:00+01:00By

BF Borgers was all but shuttered by the Securities and Exchange Commission after the agency accused the firm of massive fraud impacting more than 1,500 SEC filings audited over a 2 1/2-year span.

KPMG

News Brief

​PCAOB removes redactions on 2022 KPMG inspection

2024-05-01T15:57:00+01:00By

The Public Company Accounting Oversight Board published the full results of its 2022 inspection for Big Four firm KPMG after its initial report contained more than two dozen redactions.

Accounting

Premium

Accountancy bodies urge ethical behavior amid exam cheating scandals

2024-04-25T12:50:00+01:00By

Trust in the integrity of corporate finance and auditing is vital, but repeated scandals over exam cheating at the largest multinational firms are denting faith in the system globally.

ADM sign

News Brief

ADM CFO to depart amid accounting probes

2024-04-24T18:42:00+01:00By

Food processing company ADM announced Chief Financial Officer Vikram Luthar, who was placed on administrative leave in January amid a probe into the company’s accounting practices, will resign.

ESG vector

Premium

Report: Poor awareness of supply chain disclosure regs leaving firms exposed

2024-04-23T15:44:00+01:00By

Compliance failures in the supply chain are hampering organizations’ efforts to implement environmental, social, and governance initiatives and meet disclosure requirements, according to a new report by U.K. law firm Burges Salmon.

blackline 300x200

Webcast

CPE Webcast: Mitigating risk: Strengthening control and compliance

2024-04-18T14:00:00+01:00Provided by

Today’s compliance professionals face increasing pressures from talent shortages, a rapidly evolving regulatory landscape, and rising transaction volumes—increasing both complexity and risk.

KPMG

News Brief

KPMG Netherlands fined record $25M by PCAOB for exam cheating

2024-04-10T18:35:00+01:00By

KPMG Netherlands agreed to pay a record $25 million penalty levied by the U.S. Public Company Accounting Oversight Board for allegedly allowing widespread cheating by employees on internal training exams and misinforming regulators about the misconduct.

Grant Thornton

News Brief

Grant Thornton UK dinged $51K for pension fund audit lapses

2024-04-09T17:23:00+01:00By

Grant Thornton UK was assessed a penalty of £40,000 (U.S. $51,000) by the Financial Reporting Council for alleged procedure failures affecting the firm’s audit of a local authority’s pension fund.

SEC

News Brief

Legal pushback prompts SEC to stay climate-related disclosure rule

2024-04-05T16:40:00+01:00By

The Securities and Exchange Commission delayed implementation of its climate-related disclosure rule until the courts can rule on appeals filed in response to the controversial policy.

Accounting fraud

News Brief

Ebix: SEC probe into short seller claims closed

2024-04-03T05:04:00+01:00By

Ebix announced the Securities and Exchange Commission closed an investigation into allegations against the software company’s accounting practices raised in a short seller report.

PwC building

News Brief

PwC fined $2.75M by PCAOB for independence process breakdowns

2024-03-29T15:39:00+00:00By

Big Four audit firm PwC was assessed a $2.75 million penalty by the Public Company Accounting Oversight Board for failures in its auditor independence processes related to a 2018 engagement.

Chemours

News Brief

​Chemours: DOJ, SEC probing exec accounting misconduct

2024-03-28T14:22:00+00:00By

Chemours disclosed it received requests for information from the Department of Justice and Securities and Exchange Commission regarding findings from an internal review into alleged accounting misconduct by several of its top executives.

Whistleblower vector

Premium

NAVEX whistleblower report finds third parties lead on business integrity

2024-03-27T21:27:00+00:00By

A new report on corporate whistleblowing and hotline trends in 2023 found reporting volume at an all-time high, with key disparities uncovered between reports filed by third parties and those filed by employees.

equinix_web

News Brief

Equinix probing short seller accusations amid DOJ scrutiny

2024-03-25T19:48:00+00:00By

Data center owner Equinix disclosed it launched an independent investigation to review matters referenced in a recent short seller report that also caught the attention of the Department of Justice.

KPMG

News Brief

PCAOB fines KPMG China partners combined $150K over audit violations

2024-03-21T17:50:00+00:00By

The Public Company Accounting Oversight Board imposed collective fines totaling $150,000 against three partners at KPMG China for violations of standards related to their audit work at education service provider Tarena International.

equinix_web

News Brief

Short seller accuses Equinix of ‘selling AI pipe dream,’ accounting manipulation

2024-03-20T19:41:00+00:00By

Data center owner Equinix boasts artificial intelligence as a boon to business when power consumption costs related to implementing AI could be detrimental to its profitability, according to short seller Hindenburg Research.

DOJSeal

News Brief

Ex-Stericycle finance director charged for bribery scheme role

2024-03-20T18:17:00+00:00By

A former finance director at medical waste disposal company Stericycle faces Department of Justice charges for his alleged role in a bribery scheme that led the company to an $84 million settlement regarding violations of the Foreign Corrupt Practices Act.

ESGReporting

Premium

Experts: Legal noise around SEC climate disclosure rule no excuse for standing still

2024-03-20T16:03:00+00:00By

Legal experts are advising their public company clients to move forward with plans to comply with the SEC’s climate-related disclosure rule, despite lawsuits and other challenges being brought against the controversial policy in the aftermath of its approval.

WhistleblowerEmployee

News Brief

CFTC awards $1.25M to compliance/audit whistleblower

2024-03-15T11:41:00+00:00By

The Commodity Futures Trading Commission announced a landmark whistleblower award of approximately $1.25 million to an individual in an internal compliance or audit function who came forward with information on misconduct occurring at his or her employer.

Auditinspection

Premium

The auditor’s role in supply chain due diligence

2024-03-14T17:54:00+00:00By

Although compliance should be the company’s primary responsibility, auditors have become the last line of defense and are getting pressured and blamed for supply chain issues, including instances of child labor. Is this expected to become the normal for the profession?

Climate change ideas

Premium

Study: Climate transition impact reporting still lacking

2024-03-14T14:15:00+00:00By

Large polluters are failing to account for climate change impact and adaptation, but policymakers need to harmonize disclosure requirements to drive coherent action.

ADM

News Brief

DOJ joins SEC in probing ADM accounting practices

2024-03-13T18:01:00+00:00By

ADM disclosed the Department of Justice joined the Securities and Exchange Commission in probing the food processing company’s accounting practices.

Chemours

News Brief

Chemours says probe found accounting misconduct by execs

2024-03-08T16:09:00+00:00By

Chemours said an internal review into the actions of senior managers alleged to have engaged in accounting misconduct uncovered violations of the chemicals company’s code of ethics regarding the promotion of full, fair, accurate, timely, and understandable disclosure.

2022-pcaob-inspection-reports

Premium

PCAOB 2022 inspection reports: Big Four setbacks; KPMG redacted

2024-03-07T15:31:00+00:00By

Three of the Big Four audit firms saw increases to the deficiency rates observed in their latest Public Company Accounting Oversight Board inspection reports, while KPMG had its results redacted.

SEC

Premium

Concessions can’t save ‘cursed’ SEC climate disclosure rule from scrutiny

2024-03-07T00:02:00+00:00By

The Securities and Exchange Commission finally approved its ground-breaking climate-related disclosure rule, nearly two years since it was originally proposed. Though the agency significantly watered down aspects of its proposal, the rule is already facing the prospect of legal challenge.

GHG emissions

Premium

Experts: What to expect ahead of SEC climate-related disclosure rule vote

2024-03-05T22:06:00+00:00By

Nearly two years after it was first proposed, the Securities and Exchange Commission is finally poised to approve its climate-related disclosure rule—albeit a watered-down version, by all indications.

KPMG

News Brief

KPMG fined $1.9M by FRC over M&C Saatchi audit lapses

2024-03-05T20:05:00+00:00By

KPMG agreed to pay a reduced penalty of nearly £1.5 million (U.S. $1.9 million) assessed by the U.K. Financial Reporting Council addressing admitted failings in the Big Four audit firm’s financial year 2018 work at advertising services company M&C Saatchi.

NYCB

News Brief

Struggling NYCB refreshes risk, audit leadership

2024-03-04T19:24:00+00:00By

New York Community Bancorp, a mid-sized bank struggling with precarious commercial loans and troubles with its acquisition of the failed Signature Bank last year, named a new chief risk officer and chief audit executive.

lordstown_web

News Brief

SEC charges Lordstown Motors with misleading EV investors

2024-03-04T17:01:00+00:00By

Bankrupt electric vehicle maker Lordstown Motors Corp. agreed to pay disgorgement of $25.5 million to settle charges from the Securities and Exchange Commission over alleged materially false and misleading statements regarding its flagship truck.

Chemours

News Brief

Chemours places senior execs on leave over accounting review

2024-03-04T11:23:00+00:00By

Chemours announced it placed its chief executive officer, chief financial officer, and principal accounting officer on leave pending completion of an internal review into potential material weaknesses in its internal control over financial reporting.

ADM office

News Brief

ADM delays annual report filing amid ICFR assessment

2024-03-04T11:17:00+00:00By

ADM disclosed it will be late in filing its annual report for 2023 as it continues to investigate potential accounting improprieties regarding its nutrition reporting segment.

Board table

Premium

U.K. governance code revisions: Boards lead on culture, audit supports

2024-02-13T22:12:00+00:00By

Corporate culture, internal controls, and assurance moved up the boardroom agenda with the publication of the U.K.’s revised corporate governance code and its supporting guidance.

Accounting investigation

News Brief

China-based Cloopen Group avoids fine in SEC accounting fraud case

2024-02-07T12:51:00+00:00By

China-based technology company Cloopen Group Holding won’t pay a fine in settling with the Securities and Exchange Commission over an alleged accounting fraud scheme perpetrated by two of its former senior managers.

Richard Brasher 3x2

Premium

Q&A: LKQ sustainability VP on importance of environmental data

2024-02-01T14:01:00+00:00By

Richard Brasher, vice-president of sustainability at multinational automotive parts company LKQ Corp., discusses with Compliance Week his view on the added attention sustainability initiatives are receiving and where improvement remains.

China scrutiny

Premium

What future holds for PCAOB post China crackdowns

2024-01-31T13:32:00+00:00By

The Public Company Accounting Oversight Board’s first enforcement settlements with mainland China and Hong Kong firms won’t be the last, as the chair of the regulator says its “just getting started.” U.S. firms must be mindful of the specific ethical issues highlighted.

Working with AI

Premium

Deloitte survey: Companies unprepared for AI governance, risk challenges

2024-01-30T18:31:00+00:00By

Just 25 percent of corporate leaders felt their organizations were highly prepared to handle the governance and risk issues posed by generative artificial intelligence, a Deloitte survey found.

Philips

Premium

FCPA violations in China: Lessons learned from 2023 cases

2024-01-25T18:01:00+00:00By

Enforcement actions regarding alleged violations of the Foreign Corrupt Practices Act at 3M, Albemarle, Clear Channel Outdoor, and Royal Philips each had China touchpoints. Experts assess third-party risk management lessons learned from each case.

ADM

News Brief

ADM puts CFO on leave pending accounting probe

2024-01-23T18:03:00+00:00By

Food processing company ADM announced Chief Financial Officer Vikram Luthar was placed on administrative leave pending an investigation into accounting practices and procedures flagged by the Securities and Exchange Commission.

London cityscape

News Brief

FRC ups board responsibilities in corporate governance code revisions

2024-01-23T12:56:00+00:00By

The Financial Reporting Council held back on the latest round of updates to the U.K.’s corporate governance code, as the country remains wary of pushing away businesses and investors.

Audit concept

Premium

Stiffer U.K. audit penalties posing more problems?

2024-01-23T12:55:00+00:00By

Legal experts are unconvinced record fines against audit firms imposed last year by the U.K. Financial Reporting Council will necessarily improve audit quality.

The Pensions Regulator

Premium

Mixed reactions to new U.K. pensions code of practice

2024-01-22T13:00:00+00:00By

Lawyers and accountants in the United Kingdom have welcomed the publication of The Pensions Regulator’s new pensions code of practice but warned it might not improve the management of those that are not already well run.

London Stock Exchange

Premium

U.K. push for more listings to lower bar on governance?

2024-01-18T14:22:00+00:00By

Moves by the U.K.’s financial regulatory body to encourage companies to list in London might fail to deliver or send mixed messages about the value placed on corporate governance, according to experts.

Blog

PCAOB announces general counsel

2024-01-12T13:50:00+00:00By

The Public Company Accounting Oversight Board announced the appointment of James Cappoli as general counsel.

SAP

News Brief

SAP to pay $220M in FCPA settlements

2024-01-10T20:31:00+00:00By

German-based software company SAP agreed to pay more than $220 million as part of resolutions with authorities in the United States and South Africa regarding alleged violations of the Foreign Corrupt Practices Act.