Accounting & Auditing


KPMG building

KPMG facing $17.6M fine following Carillion tribunal

2022-05-13T16:48:00+01:00By

KPMG is set to pay a reduced fine of £14.4 million (U.S. $17.6 million) from the U.K. Financial Reporting Council over its botched audits at collapsed construction company Carillion and software firm Regenersis.

Accounting investigation

PCAOB fines Citrin Cooperman $200K over audit failures

2022-05-12T17:26:00+01:00By

Citrin Cooperman was fined $200,000 by the Public Company Accounting Oversight Board for failing to meet PCAOB standards during its 2016 and 2017 year-end audits at an unnamed broker-dealer.

blackline 300x200

CPE Webcast: Thriving in the age of change

2022-05-12T14:00:00+01:00Provided by

Finance automation solutions are enabling corporations to improve accuracy, execute tighter controls, and decrease risk. Accountants and auditors are unleashed to be more proactive, focus on complex and judgmental areas, and drive strategic business decisions.

CFTC building

CFTC proposal furthers transition from LIBOR in swaps

2022-05-10T19:26:00+01:00By

The Commodity Futures Trading Commission proposed a rule that would replace certain swap rate clearing requirements pegged to the London Interbank Offered Rate with other alternative reference rates that are less susceptible to manipulation.

Treasury Department

New sanctions add ban on U.S. accounting, management consulting work in Russia

2022-05-09T19:02:00+01:00By

The Treasury Department unveiled a host of new sanctions against Russian and Belarusian individuals and banks, in addition to a ban on U.S.-based accounting, management consulting, and trust and corporate formation services to any person located in the Russian Federation.

Green reporting

Need to know: SEC climate-related disclosure attestation requirements

2022-05-09T18:29:00+01:00By

While the Securities and Exchange Commission’s proposed climate-related disclosure rule is being finalized, affected companies should begin considering new attestation requirements for accelerated and large accelerated filers regarding greenhouse gas emissions.

Russia Ukraine economy

SEC: Companies must adequately disclose financial impact of Russia’s war on Ukraine

2022-05-05T18:50:00+01:00By

The Securities and Exchange Commission is warning public companies they must accurately and adequately disclose the material impact on their business caused by Russia’s war against Ukraine.

Brumadinho dam rupture

SEC accuses Vale of safety audit manipulation in 2019 dam collapse

2022-04-29T17:21:00+01:00By

Brazilian mining company Vale was accused by the Securities and Exchange Commission of making false and misleading safety audit and disclosure claims prior to the January 2019 collapse of its Brumadinho dam.

Accounting computer

FASB reference rate proposal seeks to extend LIBOR transition relief

2022-04-28T13:26:00+01:00By

The Financial Accounting Standards Board announced a proposed standard update that would defer for two years the end date of relief provided by transition guidance for businesses shifting away from the London Interbank Offered Rate.

Deloitte

​Deloitte to pay $1.8M for goodwill testing failures in Mitie Group audit

2022-04-26T19:11:00+01:00By

The U.K. Financial Reporting Council announced a reduced penalty of 1.45 million pounds (U.S. $1.8 million) against Deloitte regarding goodwill testing failures during its audit of facility management company Mitie Group for fiscal year 2016.

Domino's Pizza

SEC hits ex-Domino’s accountant with nearly $2M insider trading penalty

2022-04-22T18:08:00+01:00By

A former Domino’s Pizza accountant was hit with a nearly $2 million penalty for using nonpublic earnings reports to gain an advantage in illegal trading activity, according to the Securities and Exchange Commission.

Auditinspection

PCAOB issues two first-of-their-kind sanctions

2022-04-20T19:47:00+01:00By

The Public Company Accounting Oversight Board imposed monetary penalties and other sanctions in two unrelated actions for violations of the Sarbanes-Oxley Act and PCAOB rules and standards concerning the use of unregistered accounting firms in conducting issuer audits.

AdobeStock_315336035

IESBA broadens definition of public interest entity

2022-04-19T19:24:00+01:00By

New guidance released by the International Ethics Standards Board for Accountants broadens the definition of a public interest entity and complements other recently revised provisions to the International Code of Ethics for Professional Accountants.

Lease accounting

Survey: Lease accounting implementation at critical point

2022-04-19T13:24:00+01:00By

The “2022 Global Lease Accounting Survey” from EY and LeaseAccelerator covers how public and private companies address U.S. and international accounting requirements and challenges they have had and expect to face post-implementation.

Deloitte

FRC probing Deloitte over Go-Ahead audits

2022-04-12T15:12:00+01:00By

The U.K. Financial Reporting Council has launched an investigation into Deloitte regarding its audits performed at passenger transport company Go-Ahead Group.

Accounting coronavirus

Report: Pandemic fuels goodwill impairment spike in 2020

2022-04-11T20:12:00+01:00By

Goodwill impairment recorded by U.S. public companies more than doubled in 2020, but the total still fell short of the figure observed at the onset of the 2008 financial crisis, according to the latest annual report from Kroll.

Rising data

AA study: Cybersecurity breach disclosures surge in 2021

2022-04-08T15:26:00+01:00By

The number of cybersecurity breaches disclosed by public companies in 2021 increased 44 percent while reports of ransomware attacks also surged, according to the latest Audit Analytics study.

KPMG

Ex-KPMG audit head fined record $100K by PCAOB over cheating scandal

2022-04-06T14:56:00+01:00By

Scott Marcello, the former vice chair of audit at KPMG during the Big Four firm’s infamous cheating scandal, was fined a record $100,000 by the Public Company Accounting Oversight Board for his supervision failures.

DOJSeal

Ex-Poseidon exec gets 3-year sentence in securities fraud case

2022-04-05T22:03:00+01:00By

Joseph Kostelecky, former executive VP of U.S. operations at Poseidon Concepts, was sentenced to three years in prison and ordered to pay approximately $406.2 million in restitution for perpetrating a scheme to fraudulently inflate the company’s reported revenue.

Auditinspection

PCAOB urges auditors assess widespread implications of Ukraine crisis

2022-04-04T11:41:00+01:00By

Auditors must emphasize continuous monitoring and reassessment of relevant implications in navigating the economic climate following Russia’s invasion of Ukraine, according to guidance from the Public Company Accounting Oversight Board.

Accounting trends

FASB issues CECL disclosure updates

2022-04-01T13:48:00+01:00By

The Financial Accounting Standards Board finalized amendments to its credit losses standard aimed at enhancing loan modification and writeoff disclosures.

Big Four Auditor Changes 2022

Audit client turnover 2021: Deloitte, Grant Thornton lead national firms; EY, KPMG, PwC see declines

2022-03-31T13:49:00+01:00By

Deloitte and Grant Thornton each had net increases in new public company audit clients in 2021, but all but one of the other Big Four and global and national firms experienced net decreases or no change, according to the latest annual study.

Baidu

Baidu headlines new batch of HFCAA designations

2022-03-30T18:56:00+01:00By

Technology giant Baidu is the latest high-profile Chinese company to be warned by the Securities and Exchange Commission of potential delisting under the Holding Foreign Companies Accountable Act.

Congress

PCAOB whistleblower program bill reintroduced to Congress

2022-03-29T16:23:00+01:00By

A bill that proposes to create a whistleblower program for the Public Company Accounting Oversight Board has been reintroduced to the House after failing to be acted upon by the Senate in 2019.

AccountingUpdateFeature

FASB finalizes update to hedge accounting layering method

2022-03-29T13:40:00+01:00By

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

AuditOpinionFeature

Five insights gleaned from PCAOB audit committee chair report

2022-03-28T15:19:00+01:00By

The Public Company Accounting Oversight Board published its annual report highlighting feedback received from its discussions with audit committee chairs at U.S. public companies during the previous year.

Weibo

SEC adds Weibo to HFCAA watchlist

2022-03-23T18:33:00+00:00By

The Securities and Exchange Commission added Chinese social media giant Weibo Corp. to its list of companies not in compliance with the Holding Foreign Companies Accountable Act.

KFC China

SEC notifies five Chinese companies of HFCAA noncompliance

2022-03-11T20:28:00+00:00By

The Securities and Exchange Commission has notified five China-based public companies they could be delisted from U.S. stock exchanges if they do not allow their audits to be inspected by the Public Company Accounting Oversight Board.

KPMG

KPMG fined $1.15M for Revolution Bars Group audit failings

2022-03-08T18:59:00+00:00By

The U.K. Financial Reporting Council announced a reduced fine of 875,000 pounds (U.S. $1.15 million) against KPMG for audit failings in its work at bar chain Revolution Bars Group for the fiscal years ended 2015 and 2016.

Trending down

Report: Record low number of going concern opinions in FY2020

2022-02-28T17:17:00+00:00By

Public companies receiving going concern audit opinions during fiscal year 2020 were at the lowest number and percentage in the past 21 years, with little change among common issues, according to the latest report from Audit Analytics.

PwC

PwC Canada fined $950K for internal training exam cheating

2022-02-25T16:41:00+00:00By

The Canadian affiliate of Big Four audit firm PwC has agreed to pay $950,000 in penalties between audit regulators in the United States and Canada after discovering widespread cheating among employees taking internal exams.

AuditResources

Audit committees rolling with punches of evolving role

2022-02-24T19:46:00+00:00By

Two prominent audit committee chairs speak to the results of a Deloitte Center for Board Effectiveness and Center for Audit Quality report on audit committee practices and the major issues audit committees face today.

Baxter International

Baxter to pay $18M for foreign exchange accounting violations

2022-02-23T19:21:00+00:00By

American multinational healthcare product company Baxter International agreed to pay $18 million as part of a settlement with the Securities and Exchange Commission for accounting violations related to the recording of foreign currency transactions.

Accounting fraud

Report: Accounting enforcement at SEC, PCAOB down in 2021

2022-02-18T12:33:00+00:00By

The amount of accounting and audit enforcement actions by the Securities and Exchange Commission and Public Company Accounting Oversight Board decreased in 2021, resulting in a sharp decline in monetary settlements, according to Cornerstone Research.

ESG vector

ESG reporting: A summary of investor needs and wants

2022-02-14T12:01:00+00:00By

An investor-focused panel at a recent event shared views on investors’ perspectives about current and future use of ESG metrics and disclosures and where common ground can be found between the providers and users of the information.

KPMG

Three lingering questions to arise from KPMG tribunal over Carillion, Regenersis

2022-02-10T13:13:00+00:00By

Details to emerge from the disciplinary tribunal regarding KPMG’s conduct during its work at Carillion and Regenersis could have ramifications for the Big Four firm, the audit profession more widely, and potential future regulation and monitoring.

RSM

​Mixed results for Marcum, RSM in 2020 PCAOB inspections

2022-02-04T19:40:00+00:00By

The Public Company Accounting Oversight Board published 2020 inspection reports for a handful of large U.S. audit firms outside the Big Four. Marcum and RSM had the most audit deficiencies identified of the group.

KPMG

KPMG facing $1.8B lawsuit over Carillion audits

2022-02-04T18:29:00+00:00By

KPMG is facing a £1.3 billion (U.S. $1.8 billion) lawsuit for missing “red flags” during its audits at failed construction company Carillion, which creditors say was insolvent more than two years before it collapsed.

Audit concept

AA study: Total audit fees decline in 2020 for first time in decade

2022-02-02T23:52:00+00:00By

Total and average audit fees in 2020 each declined for the first time since 2010, according to the latest Audit Analytics research.

Jan du Plessis

FRC to reinvigorate enforcement efforts ahead of transition to ARGA

2022-01-28T17:51:00+00:00By

The U.K. Financial Reporting Council expects to receive greater staffing and resources to ramp up the number of investigations it carries out over 2022 as it prepares to make way for a new regulator next year.

Tom Seidenstein

Q&A: IAASB head on audit's role in combating fraud, ESG, new technologies, more

2022-01-27T18:18:00+00:00By

IAASB Chair Tom Seidenstein discusses with Compliance Week the organization’s current and future efforts to improve audit quality, the biggest challenges to audit confidence today, and what emerging issues might be around the corner.

ESG accounting

ESG reporting: A summary of preparers’ perspectives

2022-01-26T16:17:00+00:00By

Preparers speaking at a pair of recent high-profile accounting and auditing conferences discuss current practices and the challenges their controllership teams face in ESG reporting and governance.

AuditCovid

How Covid-19 has redefined the seamless audit process

2022-01-24T19:00:00+00:00By

The pandemic has forced companies to make significant changes to their internal audit processes and how they prepare for external auditors to review their financials. A recent CW webcast sponsored by BlackLine explored how technology can help meet these new challenges.

Blackline-Pandemic-Audit

e-Book: Pandemic paves way for new financial audit process

2022-01-24T18:48:00+00:00Provided by

This e-Book from Compliance Week and audit cloud software vendor BlackLine Systems focuses on how companies are enhancing their audit processes amid the ongoing pandemic.

KPMG

KPMG fined $4.1M for Conviviality audit failings, reaches settlement regarding Regenersis

2022-01-19T20:59:00+00:00By

The U.K. Financial Reporting Council announced sanctions against KPMG regarding its audits at now-collapsed alcohol retailer Conviviality, in addition to a settlement with the Big Four firm concerning its work at software company Regenersis.

PwCcrop

FRC expands probe of PwC’s Babcock International audits

2022-01-18T20:35:00+00:00By

The U.K. Financial Reporting Council has expanded its investigation into PwC over its statutory audits of British defense contractor Babcock International Group to include the fiscal years ended March 31, 2019, and March 31, 2020.

PCAOB

Erica Williams sworn in as PCAOB chair

2022-01-11T20:32:00+00:00By

Erica Williams assumes leadership of a newly reconstituted Public Company Accounting Oversight Board that can count implementation of the Holding Foreign Companies Accountable Act among its top priorities.

Magnifying glass

S&T AG orders Deloitte audit of short seller allegations

2021-12-28T18:37:00+00:00By

Austrian technology company S&T AG has ordered a forensic audit of its corporate structure and several recent acquisitions in response to allegations made by short seller Viceroy Research.

Documents

Should lawyers, accountants be filing more SARs?

2021-12-28T14:32:00+00:00By Jason Morris, International Compliance Association

A study of suspicious activity reporting data in the United Kingdom suggests accountants, lawyers, estate agents, and other service-facing professionals could be doing more to contribute to the fight against financial crime.

AuditTech

ISACA issues audit resources on SOX, VPNs, agile auditing

2021-12-23T15:46:00+00:00By

The ISACA, an international professional association focused on IT governance, released three new resources designed to assist audit professionals in enhancing their skills to meet the needs of the evolving audit landscape.