Accounting & Auditing


United Kingdom

Will U.K. mandate that Big Four separate audit units make a difference?

2020-07-07T16:52:00+01:00By

The FRC hopes its demand that the Big Four isolate their audit units from their other businesses by 2024 will improve their ethical behavior … but some are skeptical.

Wirecard

Wirecard scandal will have cascading impact on Germany’s audit, regulatory landscape

2020-07-07T15:30:00+01:00By

Wirecard already is shaping up to be to Germany what Enron was to the United States: An accounting oversight failure so epic in its scope and scale that its aftermath is likely to forever alter the country’s auditing and accounting profession as it exists today.

Wirecard

In time of crisis, Wirecard has turned to its would-be CCO to lead

2020-06-30T15:58:00+01:00By

Reeling from a $2 billion accounting scandal, Wirecard has turned to its would-be chief compliance officer as its interim CEO. It’s the first smart move the company has made in a while, writes Martin Woods.

SEC

VEREIT to pay $8M to settle SEC fraud charges

2020-06-24T19:02:00+01:00By

VEREIT, a publicly traded real estate investment trust, will pay an $8 million penalty to resolve SEC fraud charges over intentionally overstating a key non-GAAP performance metric.

Accounting fraud

FRC to probe EY, PwC audits of London Capital & Finance

2020-06-24T18:33:00+01:00By

The U.K. Financial Reporting Council has commenced three investigations into the audits of collapsed investment firm London Capital & Finance, including audits carried out by Big Four firms EY and PwC.

Wirecard

Lessons from Wirecard: Ignore unchallenged allegations at your peril

2020-06-24T14:34:00+01:00By

When a company does not rebut serious allegations of wrongdoing with litigation, the only response is to demand answers from the firm or take your business elsewhere, writes financial crime expert Martin Woods.

AccountantStruggle

How coronavirus has shifted non-GAAP measures

2020-06-24T14:20:00+01:00By

The rules around non-GAAP reporting have not changed, but the coronavirus pandemic has brought about new considerations and challenges to consider in second-quarter reporting.

GE

Auditor change: GE dumps KPMG for Deloitte

2020-06-23T17:01:00+01:00By

General Electric announced the appointment of Deloitte as its new independent auditor for fiscal year 2021, ending a relationship with KPMG that dates back to 1909.

regulatory events 2019

Regulators skew virtual with summer events calendar

2020-06-17T16:21:00+01:00By DeAnn Orie

Despite the coronavirus pandemic throwing a wrench into the events industry, U.S. regulators are still planning Webinars and other opportunities this summer to engage with the public.

KPMG

FRC sanctions KPMG for audit failings of Foresight 4 VCT

2020-06-15T16:56:00+01:00By

The U.K. Financial Reporting Council imposed non-financial sanctions on KPMG related to audit failures concerning the financial statements of investment firm Foresight 4 VCT for fiscal years ending 2013, 2014, and 2015.

InternalAuditFuture

Best practices for auditing in the current crisis and beyond

2020-06-11T20:13:00+01:00By

A session from a recent MetricStream virtual conference provides lessons for internal audit on what risks to watch out for and how to chart a path forward.

Auditinspection

KPMG cites internal control weaknesses in BT Group review

2020-06-08T19:43:00+01:00By

KPMG, in conducting an independent review of BT Group, has expressed the telecommunications company “did not maintain effective internal control over financial reporting” following its accounting fraud scandal.

Tesco Stores

FRC strikes out again as third Tesco probe ends

2020-06-08T17:57:00+01:00By

The U.K. Financial Reporting Council has ended its third and final investigation into the Tesco accounting scandal, yet again failing to find anyone responsible for the overstating of £250 million (U.S. $317.5 million) in profits.

2016-2018 audit inspection reports

PCAOB inspection reports: Deloitte shines in 2018; KPMG still behind

2020-06-08T16:09:00+01:00By

The Public Company Accounting Oversight Board issued 2018 inspection reports for the six largest U.S. audit firms, with Deloitte boasting the fewest deficiencies among the Big Four and KPMG struggling most.

AccountingCoronavirus

FASB finalizes leases, rev rec delays prompted by coronavirus

2020-06-03T20:16:00+01:00By

The Financial Accounting Standards Board finalized effective date delays of one year to standards affecting revenue recognition and leases in response to the coronavirus pandemic.

Making it Balance

Documentary: Roadtrip Nation, CAQ partner to explore auditing careers

2020-06-03T14:50:00+01:00By

Considering a career in auditing? A new documentary produced by Roadtrip Nation and supported by the Center for Audit Quality follows three individuals pursuing just such a career.

EY

Investigation into EY’s audit of Danske Bank dropped

2020-06-01T17:40:00+01:00By

Denmark’s state prosecutor has dropped its investigation into whether Big Four firm EY violated anti-money laundering laws in connection with its audit of Danske Bank.

ChinaUS

U.S. takes aim at China with stock delisting bill

2020-05-27T20:10:00+01:00By

The “Holding Foreign Companies Accountable Act,” passed unanimously by the Senate and now headed to the House, looks to rein in accounting improprieties of Chinese-based companies listed on the U.S. Stock Exchange.

FinanceProbe

How corporate finance can manage coronavirus challenges

2020-05-27T18:40:00+01:00By

Steve Barta, a partner in the Audit and Assurance practice of Deloitte & Touche, reveals some key accounting areas where finance leaders might need to give extra attention.

audit

FRC probes KPMG, PwC over audits of Eddie Stobart Logistics

2020-05-27T15:01:00+01:00By

The U.K. Financial Reporting Council has launched investigations into Big Four firms KPMG and PwC concerning the audits of U.K. logistics company Eddie Stobart Logistics.

blackline audit

e-Book: A Roadmap for Auditors Tackling COVID-19 Challenges

2020-05-27T05:26:00+01:00Provided by

The coronavirus pandemic has industries scrambling to rewrite the blueprints for effective operations, with auditors under pressure to perform.

CoronavirusQuestions

CAQ: Virtual work, ICFR among coronavirus audit issues

2020-05-21T18:13:00+01:00By

The Center for Audit Quality advisory board member firms met with CAQ Executive Director Julie Bell Lindsay to discuss concerns relating to the coronavirus pandemic.

blackline 300x200

CPE Webcast: Best practices for enabling remote audit with tech

2020-05-21T14:00:00+01:00Provided by

Although company management and auditors may not see eye to eye on everything, they can agree that teams must find new ways to effectively work together during the COVID-19 crisis.

KPMG

KPMG audit partners settle test cheating allegations

2020-05-19T17:05:00+01:00By

The KPMG cheating scandal expanded this week as three former partners at the firm settled charges with the SEC regarding the improper sharing of answers for internal training exams.

KPMG building

KPMG faces $306M negligence claim over Carillion audit

2020-05-13T17:04:00+01:00By

U.K. government liquidators are preparing to sue KPMG for £250 million (U.S. $306 million) over alleged negligence in its audits of collapsed construction firm Carillion.

luckin

Luckin Coffee fires CEO, COO over accounting scandal

2020-05-13T16:45:00+01:00By

Luckin Coffee, the China-based equivalent of Starbucks roiled by allegations of fabricating millions in 2019 sales, has fired its CEO and reshuffled top leadership as part of its ongoing internal probe.

Visual Lease dramatic impact cover img

White paper: The Dramatic Impact of the New Lease Accounting Standards

2020-05-13T14:00:00+01:00Provided by

The new lease accounting standards – ASC 842, IFRS 16 and GASB 87 – impact companies of all sizes and industries.

AccountingCoronavirus

PCAOB inspection pause ends without extension

2020-05-12T15:57:00+01:00By

The Public Company Accounting Oversight Board announced the conclusion of its coronavirus-related 45-day relief period on audit inspections without an extension.

Accounting fraud

MiMedx names new accounting chief post fraud settlement

2020-05-11T16:14:00+01:00By

Biotech company MiMedx Group, which last November settled an alleged case of accounting fraud with the SEC, announced the appointment of William Phelan as senior vice president and chief accounting officer.

AuditAdvice

How audit committees should prep for coronavirus challenges

2020-05-07T16:52:00+01:00By

Hille Sheppard of Sidley Austin offers some insights into what tactics audit committees should employ to confront uncertainties caused by the coronavirus pandemic.

EY

EY audit of NMC Health under investigation

2020-05-06T18:10:00+01:00By

The U.K. Financial Reporting Council has opened an investigation into EY’s audit of the 2018 financial statements of NMC Health, which is currently under investigation for accounting fraud.

AuditCoronavirus

PwC guidance: Navigating audit committee responsibilities amid the coronavirus pandemic

2020-05-05T14:00:00+01:00By

Internal auditors will want to check out a recent publication from PwC on how to navigate core audit committee responsibilities amid the coronavirus pandemic.

Accounting fraud

Two former Penn West execs settle accounting fraud charges with SEC

2020-04-29T18:52:00+01:00By

The former CFO and former VP of accounting and reporting at Penn West Petroleum have settled SEC charges for their role in an accounting fraud scheme that spanned several years.

luckin

Analysis: Luckin Coffee saga a case of déjà vu?

2020-04-29T18:42:00+01:00By

Financial crime expert Martin Woods ponders how the SEC can ensure foreign companies, like China-based Luckin Coffee, that publicly trade in the U.S. can apply the proper standards of compliance, financial reporting, and even whistleblower protections.

Questions raised

FASB Q&A tackles coronavirus effect on hedge accounting

2020-04-29T17:20:00+01:00By

FASB staff issued a question-and-answer document to address uncertainty about the effects of the coronavirus pandemic on cash flow hedge accounting under Accounting Standards Codification Topic 815.

AuditResources

CAQ exec: How audit must adapt amid coronavirus challenges

2020-04-27T14:23:00+01:00By

Julie Bell Lindsay, executive director of the Center for Audit Quality, shares her perspectives on how public company auditors are coping with new challenges from the coronavirus pandemic.

VL buyers guide cover img

White paper: Lease Accounting Software Buyer’s Guide

2020-04-24T06:51:00+01:00Provided by

Choosing the wrong solution for your lease accounting needs has huge implications for your business, including risking inaccurate lease financials. You’ll want to select a comprehensive solution to manage your leases, and our Buyer’s Guide can help you do just that.

Mergerscrop

Analysis: EY now faces questions of trust

2020-04-22T17:51:00+01:00By

In the case of Amjad Rihan versus EY, a question of trust has opened a can of worms. Financial crime expert Martin Woods explores.

EY

Analysis: EY brand takes beating in case vs. whistleblower

2020-04-21T15:41:00+01:00By

What does the Amjad Rihan case do to the brand of EY and, more pointedly, those who spend time with EY as clients? Financial crime expert Martin Woods offers his take.

ItalyFee

Eni to pay $24.5M to resolve FCPA charges

2020-04-20T15:34:00+01:00By

Italian oil company Eni will pay $24.5 million to settle SEC charges that it violated the Foreign Corrupt Practices Act with regard to the award of certain contracts to its former subsidiary Saipem in Algeria.

ContactUs

PCAOB seeks more practitioner input on CAMs

2020-04-17T19:34:00+01:00By

The Public Company Accounting Oversight Board is seeking practitioner comment on Critical Audit Matter requirements, part of the agency’s strategic plan to solicit more input from stakeholders.

EY

U.K. court orders EY to pay $11M to whistleblower, a former partner

2020-04-17T18:57:00+01:00By

A former EY partner who blew the whistle on a massive money laundering scheme was awarded nearly $11 million by a U.K. judge, settling a lawsuit in which he claimed EY buried an audit that uncovered wrongdoing by a client.

BulldozedAudit

SEC censures Schulman Lobel for deficient audit engagements

2020-04-16T16:04:00+01:00By

The SEC censured audit firm Schulman Lobel and ordered it to pay a total of $98,510 for deficient audit and review engagements it performed on now-defunct software provider Quadrant 4 System.

GoingConcernDrop

Study: Going concern opinions in 2018 at lowest level in 19 years

2020-04-15T14:36:00+01:00By

Public company audit opinions communicating doubts about their ability to continue as going concerns reached a 19-year low in 2018, based on the latest report from Audit Analytics.

Tesco Stores

SFO: Tesco concludes three-year DPA for accounting scandal

2020-04-13T18:43:00+01:00By

The U.K. Serious Fraud Office announced British supermarket chain Tesco Stores has fulfilled the terms of its 2017 deferred prosecution agreement resulting from an accounting fraud scandal.

Accounting

FASB Q&A addresses lease concessions related to coronavirus

2020-04-13T15:03:00+01:00By

FASB staff has issued interpretative guidance in the form of a question-and-answer document addressing accounting for lease concessions related to economic effects of the coronavirus pandemic.

ChinaUS

Luckin Coffee, iQIYI fraud allegations point to wider China problem

2020-04-09T18:24:00+01:00By

Scathing reports against China-based Luckin Coffee and iQIYI both alleging fabricated revenues are the latest examples of a much broader accounting and auditing problem in the United States.

AccountingAdviceFeature

FASB votes to approve leases, rev rec delays amid coronavirus response

2020-04-08T16:22:00+01:00By

The Financial Accounting Standards Board ruled unanimously on tentative effective date delays to standards affecting revenue recognition and leases in response to the ongoing coronavirus pandemic.

AuditAdvice

AICPA best practices for conducting remote audits in uncertain times

2020-04-06T17:02:00+01:00By

Auditors facing higher audit risks and new accounting and reporting issues as a result of the coronavirus pandemic and downturns in the economy have some new guidance from the AICPA.

KPMG

FRC sanctions KPMG, former senior partner for audit failings

2020-04-06T15:46:00+01:00By

The U.K. Financial Reporting Council has reprimanded and fined KPMG and one of its former senior partners for a failure to exercise “sufficient professional skepticism” and for failure to obtain “sufficient appropriate audit evidence.”