Accounting & Auditing


AuditTransparency

EY report: Fortune 100 companies boost audit transparency, including on ESG

2021-10-26T20:13:00+01:00By

Many Fortune 100 companies continue to enhance their transparency about how their audit committees are executing their core responsibilities, according to the EY Center for Board Matters’ 10th annual review of voluntary proxy statement disclosures.

Executive clawbacks

SEC executive pay clawback rule primed for ‘significant opposition’

2021-10-25T21:05:00+01:00By

The SEC is poised to pass an executive compensation rule that would require public companies to claw back incentive-based compensation if their finances are restated within the previous three years. Experts expect pushback to the proposed mandate.

3x2 web graphic

Compliance Week National Conference is going back in person in May

2021-10-25T12:00:00+01:00By

Mark your calendars: Compliance Week’s National Conference in Washington, D.C. will be held in person for the first time in nearly three years from May 16-18, 2022.

AuditResources

PCAOB 2020 inspections preview: Deficiencies still high, although some improvements

2021-10-22T16:35:00+01:00By

The Public Company Accounting Oversight Board noted a high number of recurring deficiencies in its audits reviewed despite improvements over the previous year as part of its 2020 inspection observations spotlight.

BDO

FRC launches probe of BDO over NMCN audit

2021-10-21T18:42:00+01:00By

The Financial Reporting Council announced the launch of an investigation into BDO in relation to its audit of U.K. construction and engineering company NMCN, which filed for administration earlier this month.

Real estate accounting

Real estate rationalization programs on rise amid COVID

2021-10-20T21:18:00+01:00By

As the COVID-19 pandemic continues and businesses make strategic changes in response, one of the primary areas of focus is managing where employees will work and evaluating real estate portfolios.

DOJ building

Former Poseidon executive pleads guilty in securities fraud case

2021-10-14T17:09:00+01:00By

A former executive of U.S. operations at Canadian oil services company Poseidon Concepts pleaded guilty to perpetrating a scheme to fraudulently inflate the company’s reported revenue, resulting in more than $886 million in shareholder losses.

KPMG building

KPMG rapped for ‘untruthful defense’ in Silentnight investigation

2021-10-13T16:33:00+01:00By

KPMG and one of its former partners were found to be “untruthful” during an independent tribunal’s investigation into the audit firm’s advisory role regarding the sale of mattress company Silentnight to private equity firm HIG Capital.

Countdown clock

Fed increasing LIBOR scrutiny as finish line nears

2021-10-06T17:51:00+01:00By

Financial institutions’ transition efforts away from the London Interbank Offered Rate will be intensely scrutinized by the Federal Reserve as the expiration deadline of the benchmark interest rate looms.

French Connection

FRC investigating Mazars over French Connection audit

2021-10-06T16:23:00+01:00By

The U.K. Financial Reporting Council has begun an investigation into Mazars concerning its audit of financially ailing retail company French Connection Group, which has just been sold.

Accounting fraud

FRC probing Crowe over Akazoo audit

2021-10-04T17:02:00+01:00By

The U.K. Financial Reporting Council announced the start of an investigation into audit firm Crowe UK concerning the financial statements of Luxembourg-incorporated on-demand music streaming subscription company Akazoo.

Deloitte

PCAOB fines Deloitte Canada $350K for quality control failures

2021-10-01T17:23:00+01:00By

The Public Company Accounting Oversight Board imposed a $350,000 civil penalty on Deloitte Canada for reasonable assurance quality control failures regarding an electronic work paper system update.

Grant Thornton

Grant Thornton UK fined $3.2M for Patisserie Valerie audit lapses

2021-09-27T19:30:00+01:00By

Grant Thornton UK has been fined £2.34 million (U.S. $3.2 million) by the Financial Reporting Council for failures in its audits of collapsed café chain Patisserie Valerie between 2015 and 2017.

EY

PCAOB penalizes EY partners for Synchronoss audit deficiencies

2021-09-23T18:37:00+01:00By

The PCAOB fined two EY partners for “failing to perform adequate procedures and obtain sufficient evidence” in connection with the Big Four firm’s audit of New Jersey software company Synchronoss Technologies.

Questioning

Big Four mishaps in U.K. underscore need to challenge auditors

2021-09-22T15:55:00+01:00By

Companies should question their auditors throughout the audit process, particularly in the wake of a spate of recent enforcement actions in the United Kingdom targeting the Big Four and other large firms for audit deficiencies.

blackline 300x200

CPE Webcast: Why compliance & audit should support modern accounting

2021-09-21T14:00:00+01:00Provided by

Traditional, manual accounting is not sustainable, and it can have negative downstream effects for compliance and audit teams. To modernize the way companies work, organizations must automate the manual, mundane processes that are holding them back.

AccountingUpdateFeature

FASB proposal seeks to clarify fair value standard

2021-09-17T17:28:00+01:00By

The Financial Accounting Standards Board issued a proposed update to Topic 820 that seeks to establish that a contractual restriction on the sale of an equity security should not be considered in measuring fair value.

KPMG

KPMG Australia fined $450K over training test cheating

2021-09-15T15:09:00+01:00By

The Public Company Accounting Oversight Board announced a $450,000 fine against KPMG’s Australian subsidiary to resolve allegations of widespread cheating on personnel training tests at the firm.

Climate

CAQ report: Climate-related risk considerations in audited financial statements

2021-09-14T17:33:00+01:00By

A recent Center for Audit Quality report aims to provide an understanding of how company management and their auditors apply current U.S. accounting and auditing requirements for financial statements related to climate-related risks.

ESG accounting

ESG matters have financial reporting implications now

2021-09-13T12:50:00+01:00By

While the possibility of SEC regulation mandating additional ESG disclosures remains a hot topic, the potential effects of ESG matters on a company’s financial accounting and reporting are not a future consideration.

Accounting coronavirus

Study: How COVID-19 has affected public company financials

2021-09-10T12:23:00+01:00By

Disruptions to normal operations and shifts in work environments as a result of the COVID-19 pandemic caused an increase in late filings and changes to controls, according to new research from Audit Analytics.

processunity300x200

CPE Webcast: Emerging trends from Deloitte’s global TPRM survey 2021

2021-09-09T11:00:00+01:00Provided by

Join ProcessUnity and Deloitte’s leading third-party risk practitioners as they explore key findings from Deloitte’s 2021 Global TPRM Survey. You will hear what organizations are doing in the wake of last year’s pandemic to make advancements in their approach to third-party risk.

Cavco Industries

Ex-Cavco Industries CCO charged with accounting control failures

2021-09-07T20:03:00+01:00By

The former CFO and chief compliance officer of Cavco Industries has been charged by the SEC with internal accounting control failures and for misleading the company’s auditor regarding an insider trading matter.

Telecom satellite

SEC fines telecom Pareteum $500K for overstating revenue

2021-09-03T15:16:00+01:00By

New York City-based telecom Pareteum Corp. will pay $500,000 to settle SEC charges it committed fraud by overstating its revenue by approximately $42 million over six quarters and providing false information to auditors.

Kraft Heinz

Kraft Heinz fined $62M in SEC accounting probe

2021-09-03T15:03:00+01:00By

Kraft Heinz agreed to pay $62 million as part of a settlement with the SEC for improper accounting that led to the restatement of several years of financial reporting.

Green accounting

Study: Auditor assurance over ESG reporting still in early stages

2021-09-03T13:22:00+01:00By

Despite an increase in ESG disclosures that is expected to continue, a significantly low number of public companies have obtained audit firm assurance regarding that reporting, according to a new study.

SECcrop

SEC charges CCO for role in TMG fraud scheme

2021-09-01T17:26:00+01:00By

Steven Wolfe, the former chief compliance officer of investment adviser Tellone Management Group, has been charged by the SEC for his role in a fraudulent scheme to hide information from investors.

KPMG

FRC: KPMG provided ‘false’ info in Carillion, Regenersis audit inspections

2021-09-01T16:51:00+01:00By

The U.K. Financial Reporting Council issued a disciplinary formal complaint against KPMG for allegedly providing “false and misleading” information during inspections into the Big Four firm’s audits of Carillion and Regenersis.

Londoncrop

U.K. audit breakup plan hits snag without Big Four support

2021-08-31T15:17:00+01:00By

The Big Four audit firms have refused to back a U.K. government plan to break their dominance of the market by forcing them to share work with smaller competitors to give them a foothold.

AccountingAdviceFeature

Changing accounting standards driving financial process remediations

2021-08-27T11:40:00+01:00By

In response to new standards affecting leases, revenue recognition, and credit losses, public companies have significantly changed their financial processes in the past year and are not done yet, according to data from Deloitte.

EY

EY fined $3M in U.K. for Stagecoach audit failings

2021-08-25T18:32:00+01:00By

The U.K. Financial Reporting Council ordered EY to pay a reduced fine of £2.2 million (U.S. $3 million) related to its audits of international transport company Stagecoach Group for the 2017 financial year.

SEC office

SEC fines Healthcare Services Group $6M over contingency reporting lapses

2021-08-24T20:55:00+01:00By

Healthcare Services Group agreed to pay $6 million as part of a settlement with the Securities and Exchange Commission for contingency reporting failures that led to accounting and disclosure violations.

PCAOB

Two PCAOB members resign ahead of SEC overhaul

2021-08-23T20:47:00+01:00By

Rebekah Goshorn Jurata and Megan Zietsman have announced they will resign, meaning the PCAOB could soon be left with one active member ahead of SEC plans to clean house at the audit regulator.

Richard Jones

One-on-one with Richard Jones: What lies ahead at FASB

2021-08-23T12:32:00+01:00By

A year into the job, FASB Chair Richard Jones catches up with Compliance Week regarding recent improvements to major accounting standards, ongoing projects, future topics of interest, and more.

Domino's Pizza

Ex-Domino’s accountant settles insider trading charges

2021-08-09T16:34:00+01:00By

A former accountant at pizza chain Domino’s has agreed to pay $68,360 to settle charges of insider trading brought by the Securities and Exchange Commission.

KPMG

KPMG fined $18M for ‘integrity and objectivity’ breaches in Silentnight sale

2021-08-05T18:14:00+01:00By

The Financial Reporting Council ordered KPMG to pay a £13 million (U.S. $18 million) fine for “breaches of the principles of integrity and objectivity” in its advisory role regarding the 2011 sale of mattress company Silentnight to U.S. private equity firm HIG Capital.

China scrutiny

SEC seeks more risk disclosures from China-based companies

2021-08-02T19:27:00+01:00By

The SEC will require China-based public companies listed on U.S. exchanges to make more disclosures about the financial risks posed by potential interference in their operations by the Chinese government.

EY

EY fined $10M for independence violations in Sealed Air engagement

2021-08-02T19:19:00+01:00By

EY has agreed to pay $10 million as part of a settlement with the SEC related to charges of auditor independence misconduct perpetrated by several partners of the Big Four firm to secure Sealed Air as a client.

KPMG building

Ex-KPMG partners barred by SEC over cheating scandal roles

2021-07-30T14:28:00+01:00By

David Britt and Thomas Whittle have been indefinitely barred from practicing as accountants before the Securities and Exchange Commission for their roles in the KPMG cheating scandal.

Whistleblower Day

Three ideas to improve the whistleblowing process

2021-07-30T13:00:00+01:00By

It’s important to take stock of how far whistleblowing has advanced over the last few years. That said, there is still room for improvement. Aaron Nicodemus offers three suggestions.

Jeffrey Smith

Part 5: Waiting for payout a grueling test of tenacity for whistleblowers

2021-07-30T13:00:00+01:00By

The road to a payout for whistleblowers is long, lonely, and full of obstacles. Commitment to the idea that they are doing the right thing helped our whistleblower subjects endure years of hardship to bring their cases to conclusion.

Andrew Russo

Part 4: Retaliation pervades while whistleblowers persevere

2021-07-29T13:00:00+01:00By

Retaliation for blowing the whistle comes in all kinds of forms. Our whistleblower subjects share their stories—from losing jobs to getting blacklisted to being the target of a newspaper hit piece.

Dee Dee Stone

Part 3: Blowing the whistle weighs uncertainty against moral duty

2021-07-28T13:00:00+01:00By

Once someone decides to blow the whistle, their life is forever changed. Their action stands to benefit many people they don’t even know while putting much in jeopardy on a personal level. Our whistleblower subjects each explain what led them to their determinations.

Brendan Delaney

Part 2: Internal reporting sends whistleblowers down path alone

2021-07-27T13:00:00+01:00By

Almost no one becomes a whistleblower by choice. A slow and steady whittling down of options often leads individuals to isolation in coming to their decision. Our whistleblower subjects share the roadblocks they faced in reporting internally.

ESGReporting

What companies (and the SEC) can learn from U.K. ESG reporting guidance

2021-07-26T16:39:00+01:00By

The U.K. Financial Reporting Council has proposed a series of measures from which companies—as well as other regulators like the SEC—could benefit as ESG disclosures receive closer scrutiny.

Aaron Westrick

Part 1: Finding the fraud launches whistleblowers on life-changing journey

2021-07-26T13:00:00+01:00By

Whistleblowers aren’t born—they’re made. For five individuals that have taken on that mantle, the story began with discovering a problem that could no longer be ignored.

KPMG

FRC 2020/21 audit inspections: KPMG rebuked over continued struggles

2021-07-23T15:28:00+01:00By

The U.K. Financial Reporting Council released the results of its 2020/21 audit quality inspections, in which it singled out KPMG for “unacceptable” deficiencies regarding the firm’s audits of banks and similar entities.

SEChq

ICFR failures cost Tandy Leather in SEC settlement

2021-07-21T16:28:00+01:00By

Tandy Leather Factory and its former CEO have agreed to pay a total of $225,000 as part of a settlement with the SEC to resolve charges of inaccurate financial reporting caused by a faulty inventory tracking system.

Lease accounting

FASB issues standard update for variable lease payments

2021-07-20T15:37:00+01:00By

The Financial Accounting Standards Board finalized an update to its leases standard targeting sales-type leases with variable lease payments.

Accounting fraud

Former FTE Networks CEO, CFO charged with accounting fraud

2021-07-15T17:05:00+01:00By

The former chief executive officer and chief financial officer of telecommunications company FTE Networks were arrested and charged with accounting fraud among a series of other alleged crimes.