Accounting & Auditing


Deloitte

FRC fines Deloitte record $19.4M for Autonomy audit failures

2020-09-17T18:53:00+01:00By

The U.K. Financial Reporting Council fined Deloitte a record £15 million (U.S. $19.4 million) for numerous findings of misconduct regarding past audits of British software company Autonomy Corporation.

EY

EY chairman: Auditors should work harder to find fraud

2020-09-15T20:31:00+01:00By

The chairman and chief executive of Big Four auditing firm EY says auditors should do more to uncover fraud while conducting external audits, a topic the industry has historically been reluctant to tackle.

blackline 300x200

CPE Webcast: Ground rules for ensuring SOX compliance from anywhere

2020-09-15T14:00:00+01:00Provided by

The ramifications of the coronavirus crisis will long outlast it—including how companies will close the books and ensure SOX compliance and where accounting and audit staff who perform these tasks will be located.

AuditResources

PCAOB adds independence, evidence projects to agenda

2020-09-09T16:54:00+01:00By

The Public Company Accounting Oversight Board has added projects regarding auditor independence and audit evidence to its research and standard-setting agendas.

VL leases update cover img

e-Book: Agile Lease Accounting During Uncertain Times

2020-09-09T05:42:00+01:00Provided by

This e-Book from Visual Lease and Compliance Week reveals how the coronavirus pandemic has impacted corporate leases.

Trending down

Report: 2019 restatements at 19-year low; revenue still top issue

2020-09-08T17:59:00+01:00By

According to Audit Analytics’ latest annual restatement study, the total number of restatements dropped for the fifth consecutive year to a 19-year low of 484, with revenue recognition still the biggest driver.

FBI

FBI reforms compliance procedures, to establish new audit office

2020-09-02T17:24:00+01:00By

Compliance reforms set to take place at the FBI include enhanced training and oversight mechanisms and a newly created office to carry out “rigorous and robust auditing.”

Samsung

Samsung heir indicted on market manipulation, accounting fraud charges

2020-09-01T15:36:00+01:00By

Lee Jae-yong, the heir and de facto leader at Samsung, was indicted by South Korean prosecutors on charges related to a 2015 merger of two subsidiaries and alleged irregularities in accounting practices at another subsidiary.

KPMG

An auditor’s perspective on big client turnover

2020-08-31T19:03:00+01:00By

An audit growth leader at KPMG shares his perspective on the process of public company auditor changes in the wake of GE’s decision to transition to working with Deloitte.

woods

What the Wirecard story tells us about red flags, healthy skepticism

2020-08-28T16:51:00+01:00By

How we came to learn about the fraud allegedly perpetrated by Wirecard offers important lessons in compliance and corporate governance, writes financial crime expert Martin Woods.

Herbalife

Herbalife finalizes $123M FCPA settlement with SEC, DOJ

2020-08-28T16:49:00+01:00By

Herbalife will pay $123 million to settle charges of violating the books-and-records and internal accounting controls provisions of the Foreign Corrupt Practices Act in China.

China

China proposes joint audit to end dispute with U.S. regulators

2020-08-28T16:41:00+01:00By

In an attempt to end the stalemate over audits of publicly traded Chinese companies listed on U.S. exchanges, China has reportedly proposed to allow U.S. regulators to conduct a trial joint inspection of a state-owned enterprise.

Nailedit1200x800

Credit to KPMG for shining a light on fraud at Wirecard

2020-08-27T15:08:00+01:00By Compliance Week

A scathing report on the extensive fraud at German payment giant Wirecard had a compliance silver lining: KPMG’s by-the-books, transparent approach to a special audit helped bring that fraud to light.

Car parts

BorgWarner fined $950K by SEC for downplaying asbestos liabilities

2020-08-27T14:43:00+01:00By

Car parts manufacturer BorgWarner has agreed to pay $950,000 as part of a settlement with the SEC for allegedly failing to calculate and report $700 million in future asbestos liability claims.

Accounting computer

Super Micro Computer, former CFO charged with accounting violations

2020-08-26T15:15:00+01:00By

A California-based server and cloud computing firm has agreed to pay $17.5 million as part of a settlement with the SEC to resolve charges of improperly booked revenue and understated expenses.

Audit

PCAOB study: Improved quality control needed in broker-dealer audits

2020-08-25T15:57:00+01:00By

Modest improvements in the audits of broker-dealers do little to absolve the need for firms to evaluate how they can enhance their systems of quality control, according to the latest figures from the PCAOB.

SEChq

SEC wants to curb sensitive data contained in CAT submissions, EDGAR filings

2020-08-24T16:06:00+01:00By

Rule changes proposed by the SEC seek to limit the amount of personally identifiable information required in data submitted to the Consolidated Audit Trail and for public company filings.

visuallease300x200

CPE Webcast: Survey insight into how COVID-19 impacted company leases

2020-08-18T14:00:00+01:00Provided by

In this webinar panel discussion, we will share striking results from a recent COVID-19 lease impact survey and key insight into how companies’ real estate and equipment leases were impacted by shutdowns and stay-at-home orders.

Stocks

Report: Trading activity by German regs spiked ahead of Wirecard collapse

2020-08-17T18:45:00+01:00By

Staff members of Germany’s financial regulator, BaFin, were reportedly buying and selling Wirecard shares at a suspiciously higher rate leading up to the collapse of the FinTech firm.

Accounting fraud

SEC investigating iQIYI over accounting scandal

2020-08-14T18:03:00+01:00By

iQIYI announced it’s under investigation by the Securities and Exchange Commission over allegations the China-based video-streaming company overstated its revenues and subscriber numbers.

Hertz

SEC charges former Hertz CEO with aiding and abetting accounting fraud

2020-08-14T16:26:00+01:00By

The Securities and Exchange Commission charged Mark Frissora, the former chief executive officer of car rental service Hertz, with aiding and abetting the company in its filing of inaccurate financial statements and disclosures.

LeasesSurvey

Survey: How COVID-19 has impacted companies’ leases

2020-08-11T19:22:00+01:00By

The coronavirus pandemic has wreaked havoc on companies’ leasing function, according to results from a recent survey from Compliance Week and Visual Lease. The study reveals how companies are tackling leasing issues in the “new normal.”

Chambers_index

Q&A: IIA president Chambers on Three Lines update, COVID-19, more

2020-08-10T18:16:00+01:00By

In the wake of drastic updates to the “Three Lines Model” for managing risk, IIA President and CEO Richard Chambers catches up with Compliance Week to discuss the changes, how COVID-19 has impacted the internal audit profession, and more.

Accounting

Despite pandemic, ‘time to act is now’ on LIBOR transition

2020-08-07T14:47:00+01:00By

Focus on LIBOR transition may have slipped during the coronavirus pandemic, but the recent conversation among regulators is once again looking toward life after the soon-expiring reference rate.

Accounting

FASB ASU simplifies liabilities, equities guidance

2020-08-06T16:26:00+01:00By

The Financial Accounting Standards Board finalized changes to accounting standards meant to simplify complexities surrounding liabilities and equities.

AuditAdvice

PCAOB: Increased audit communication a silver lining of pandemic

2020-08-03T19:56:00+01:00By

The PCAOB’s latest “Conversations with Audit Committee Chairs” update highlights the benefits committee chairs say they have gleaned from increased communications with auditors during the coronavirus pandemic.

Bausch Health

Bausch Health to pay $45M for misleading disclosures

2020-08-03T14:46:00+01:00By

The Securities and Exchange Commission charged Bausch Health (formerly Valeant Pharmaceuticals) and three former executives for improper revenue recognition and misleading disclosures in SEC filings and earnings presentations.

Three Lines

Analysis: Comparing the IIA’s new ‘Three Lines Model’ to the old one

2020-07-29T16:42:00+01:00By

The biggest improvement in the IIA’s new “Three Lines Model” of risk management is it allows for greater flexibility between “lines” and is less likely to be interpreted so literally.

Under Armour

Under Armour facing potential SEC enforcement over accounting practices

2020-07-27T18:30:00+01:00By

Under Armour revealed in a regulatory filing that its accounting practices are the subject of a pending enforcement action by the Securities and Exchange Commission.

AccountingUpdateFeature

FASB proposes new chapter for financial reporting framework

2020-07-23T18:11:00+01:00By

The Financial Accounting Standards Board has proposed a new chapter to Concepts Statement No. 8 that would define 10 elements of financial statements.

AdobeStock_360633962_Editorial_Use_Only

Accounting execs arrested as Wirecard probe continues

2020-07-23T17:55:00+01:00By

German prosecutors arrested three Wirecard executives, including the former CFO and head of accounting, as an investigation into the company’s inflated balance sheet and a missing $2 billion continues to expand.

Accountingbestpractices

IIA CEO Chambers to step down

2020-07-23T17:49:00+01:00By

The Institute of Internal Auditors announced longtime President and Chief Executive Officer Richard Chambers plans to step down at the end of March.

PwC sign

Ex-FASB head Golden to lead PwC independent advisory committee

2020-07-17T15:55:00+01:00By

Big Four audit firm PwC announced the addition of former Financial Accounting Standards Board head Russell Golden as chair of its recently formed, independent Assurance Quality Advisory Committee.

Accounting fraud

FRC closes accounting investigation into Mitie Group

2020-07-15T17:07:00+01:00By

The U.K. Financial Reporting Council announced the closure of its nearly three-year-long investigation into the financial statements of facility management firm Mitie Group for the year ended March 31, 2016.

FRC audits

FRC audit inspections: Deloitte leads way as quality declines as a whole

2020-07-14T16:22:00+01:00By

The Financial Reporting Council published the results of its latest round of audit inspections, concluding one-third of the reviewed audits conducted by the seven largest U.K. firms required a notable level of improvement.

clock delay

FASB proposes delay to long-duration insurance standard

2020-07-09T17:59:00+01:00By

The Financial Accounting Standards Board proposed a one year delay to its standard on accounting for long-duration contracts at insurance companies as a result of the ongoing coronavirus pandemic.

/web/img/field/image/grantthorntonhome.jpg

Grant Thornton UK fined $2.4M for ethical, independence failures

2020-07-08T18:26:00+01:00By

The U.K. Financial Reporting Council fined Grant Thornton £1.95 million (U.S. $2.4 million) for firmwide ethical and independence failures concerning an audit of alcohol retailer Conviviality Retail.

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.