Accounting & Auditing


Board table

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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.

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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

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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

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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

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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

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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

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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

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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

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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 CW Staff

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.

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Opinion

Ten things I’d like to see happen in 2024

2024-01-08T16:02:00+00:00By

Election years in the United States, United Kingdom, and at European Parliament, along with ongoing geopolitical tensions, make 2024 difficult to predict—aside from the expectation compliance officers will be busy.

Accounting fraud

News Brief

SEC fines UAE-based Brooge Energy $5M in fraud case

2023-12-22T17:00:00+00:00By

Brooge Energy agreed to pay $5 million in a settlement with the Securities and Exchange Commission resolving fraud charges related to a scheme to inflate revenues.

PwC

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FRC drops investigation into PwC’s Intu Properties audits

2023-12-19T15:00:00+00:00By

The U.K. Financial Reporting Council announced it closed its investigation into Big Four firm PwC’s audit work at collapsed real estate investment trust Intu Properties.

United Kingdom

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ARGA future questioned as U.K. audit reform hits backburner

2023-12-18T18:57:00+00:00By

The U.K. Financial Reporting Council’s long-planned transition to become the Audit, Reporting and Governance Authority appears to be taking place no time soon, leading some to question whether the change will happen at all.

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Webcast

Webcast: Application security and controls: Avoiding the resurgence of material weaknesses

2023-12-12T14:00:00+00:00Provided by

We’ll discuss real-life examples of companies who have implemented technologies and techniques to monitor internal controls, increase control testing accuracy, boost security role precision, reduce the cost of compliance, improve ERP operational effectiveness, or recover from a material weakness.

AI risks

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Surveys: Finance, legal execs share concerns around AI use

2023-12-06T17:27:00+00:00By

Finance executives and general counsel alike say their firms and leadership teams are unprepared for the risks and benefits of artificial intelligence, according to two recent surveys.

Blog

PwC Australia announces new general counsel

2023-12-06T14:44:00+00:00By CW Staff

Accounting firm PwC Australia announced the appointment of Kylie Gray as general counsel.

SEC

News Brief

Mallinckrodt dodges $40M SEC penalty in disclosure violation case

2023-12-01T15:47:00+00:00By

Pharmaceutical company Mallinckrodt, fresh out of its second bankruptcy, was spared having to pay a $40 million penalty levied by the Securities and Exchange Commission for alleged disclosure and accounting failures related to its underpaying of Medicaid rebates.

PwC

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China-based PwC affiliates fined $7M in historic PCAOB actions

2023-11-30T19:24:00+00:00By

The Public Company Accounting Oversight Board imposed $7 million in total penalties against two PwC affiliates under its first settlements with mainland Chinese and Hong Kong firms since the passage of the Holding Foreign Companies Accountable Act.

ESG data

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More companies enter ‘discovery phase’ of ESG reporting in 2023

2023-11-28T16:00:00+00:00By

Climate-related disclosure efforts are amplifying year over year, despite persistent and persnickety pain points, as more organizations widen the scope of their ESG journeys, our “Inside the Mind of the CCO” survey found.

Rio Tinto

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Rio Tinto to pay $28M in SEC fraud case

2023-11-21T21:13:00+00:00By

Rio Tinto consented to pay a $28 million fine to resolve charges levied by the Securities and Exchange Commission alleging the mining company and its executives committed fraud by inflating the value of coal assets.

KPMG

News Brief

KPMG Japan fined $500K over journal entry quality controls

2023-11-15T22:18:00+00:00By

The Japanese affiliate of Big Four audit firm KPMG was assessed a $500,000 penalty by the Public Company Accounting Oversight Board for quality control deficiencies regarding journal entry testing.

Spectrum

News Brief

Charter Communications fined $25M over stock buyback violations

2023-11-15T18:46:00+00:00By

The Securities and Exchange Commission fined Charter Communications $25 million for violating internal accounting control requirements related to stock buybacks.

PwC sign

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PwC Greece fined $3M for due care, skepticism failures

2023-11-14T21:22:00+00:00By

The Greece-based branch of Big Four audit firm PwC agreed to pay $3 million as part of a settlement with the Public Company Accounting Oversight Board addressing alleged failures in due professional care and appropriate skepticism regarding an audit of a marine fuel logistics company.

Royal Bank of Canada

News Brief

SEC, Canadian regs fine RBC $6M for accounting failures

2023-11-06T12:59:00+00:00By

Royal Bank of Canada will pay $6 million in total penalties to settle charges from the Securities and Exchange Commission and two Canadian regulators that it failed to properly record software development costs for more than a decade.

CWE 2023 Wirecard

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Wirecard what happens when ‘those that are meant to check compliance don’t’

2023-10-26T13:09:00+01:00By

The Wirecard fraud highlights the result of regulators and auditors failing to act properly and underlines the importance of encouraging and protecting whistleblowers, said the reporter who exposed the firm in speaking at Compliance Week’s Europe conference in London.

Accounting

News Brief

PCAOB fines Smythe $175K over unregistered firm use

2023-10-25T13:58:00+01:00By

Canada-based accounting firm Smythe agreed to pay a $175,000 penalty in settling with the Public Company Accounting Oversight Board regarding its use of unregistered firms across four issuer audits.

Audit

News Brief

FRC proposes auditors closer scrutinize noncompliance

2023-10-23T18:02:00+01:00By

The U.K. Financial Reporting Council is the latest regulator to propose standard changes that would require auditors to play a larger role in detecting and reporting instances of noncompliance when reviewing company financial statements.

AuditTransparency

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Expert: SEC’s view on Prager Metis indemnity clauses ‘problematic’

2023-10-18T17:00:00+01:00By

Audit firms should carefully weigh the pros and cons of indemnity clauses in light of the Securities and Exchange Commission’s recent complaint against Prager Metis, according to a legal expert.

AuditAdvice

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PCAOB: Auditors ‘falling short’ on engagement quality reviews

2023-10-16T14:29:00+01:00By

A new staff report issued by the Public Company Accounting Oversight Board seeks to provide best practices for auditors amid observations of rising deficiency rates related to engagement quality reviews.

Paperwork overload

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Spanish labor ministry continues working condition crusade with Big Four fines

2023-10-16T14:00:00+01:00By

Spain’s labor ministry fined the Big Four accountancy firms at least €1.4 million (U.S. $1.5 million) total for overworking and underpaying their respective employees, continuing a recent trend in the country of the government cracking down on apparent labor violations.

KPMG UK

News Brief

FRC fines KPMG $26M for ‘damning’ Carillion audit failings

2023-10-12T18:43:00+01:00By

KPMG accepted the conclusions and record penalties levied against it by the U.K. Financial Reporting Council for the “exceptional” level of deficiencies found to have taken place during the Big Four audit firm’s work at collapsed construction company Carillion.

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Webcast

CPE Webcast: Focusing on control and compliance

2023-10-05T14:00:00+01:00Provided by

Amid globalization, new business models, and a constantly evolving regulatory environment, finance and accounting professionals face increasing complexities and higher transaction volumes. These issues pose challenges in delivering accurate and timely compliance and controls.

Accounting investigation

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Auditor independence on regulators’ radars

2023-10-03T14:21:00+01:00By

The Public Company Accounting Oversight Board and Securities and Exchange Commission have emphasized in public statements auditor independence is a critical enforcement area, prompting the need for firms to reacquaint themselves with each agency’s requirements.

Audit tech

News Brief

PCAOB rule update wave begins with confirmation standard

2023-10-02T20:26:00+01:00By

The Public Company Accounting Oversight Board announced the adoption of a new standard regarding auditor use of confirmation that replaces the previous version that hadn’t been notably changed in more than 30 years.

AuditOpinionFeature

News Brief

SEC accuses Prager Metis of hundreds of auditor independence violations

2023-09-29T21:45:00+01:00By

Accounting firm Prager Metis violated auditor independence rules through use of indemnification provisions in its engagement letters hundreds of times during a period of nearly three years, the Securities and Exchange Commission charged in a lawsuit.

Exelon

News Brief

Exelon, ComEd fined $46M by SEC over bribery scandal

2023-09-29T18:41:00+01:00By

Exelon and its subsidiary Commonwealth Edison agreed to pay $46.2 million as part of a settlement with the Securities and Exchange Commission related to their Illinois bribery and lobbying scandal that previously earned ComEd a deferred prosecution agreement.

Newell Brands

News Brief

Newell, ex-CEO settle with SEC over sales disclosures

2023-09-29T17:18:00+01:00By

Consumer products company Newell Brands agreed to pay $12.5 million as part of a settlement with the Securities and Exchange Commission addressing allegations the company misled investors about its core sales growth.

Billboard

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Clear Channel Outdoor to pay $26M in FCPA case over China bribes

2023-09-28T20:59:00+01:00By

Clear Channel Outdoor Holdings agreed to pay more than $26 million as part of a settlement with the Securities and Exchange Commission alleging its former China-based subsidiary bribed government officials to obtain outdoor advertising contracts.

SECBooks

News Brief

Ex-Marcum partner suspended by SEC over Ault Alliance work

2023-09-28T17:44:00+01:00By

A former engagement quality review partner at Marcum agreed to pay a $30,000 penalty and be suspended as part of a settlement with the Securities and Exchange Commission addressing alleged violations of audit standards in his work at diversified holding company Ault Alliance.

Deloitte

News Brief

Deloitte Colombia fined $900K by PCAOB for quality control violations

2023-09-27T20:21:00+01:00By

A Colombian affiliate of Big Four audit firm Deloitte agreed to pay $900,000 as part of a settlement with the Public Company Accounting Oversight Board addressing alleged quality control lapses that occurred during the 2016 audit of a bank.

Hyzon

News Brief

Hyzon Motors fined $25M by SEC for alleged fraud

2023-09-27T18:15:00+01:00By

Hyzon Motors, a global supplier of hydrogen fuel cell-powered heavy vehicles, was assessed a $25 million penalty by the Securities and Exchange Commission in agreeing to settle charges it and its former executives misled investors regarding the sales of its vehicles.

BDO

News Brief

BDO fined $2M by PCAOB for estimate evaluation lapses

2023-09-26T22:02:00+01:00By

BDO was assessed a $2 million penalty as part of a settlement with the Public Company Accounting Oversight Board addressing alleged failures in the firm’s audit work at defunct healthcare services provider AAC Holdings.

SEC office

News Brief

GTT Communications spared fine in SEC disclosure failure case

2023-09-25T17:50:00+01:00By

GTT Communications, a provider of telecommunications and internet services, avoided a civil penalty in reaching a settlement with the Securities and Exchange Commission addressing alleged disclosure failures over more than a two-year period.

ESG

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Experts: How ESG materiality assessments impact compliance

2023-09-22T12:52:00+01:00By

Transparency in environmental, social, and governance reporting has become an important goal, with materiality assessments impacting compliance outcomes, experts said during CW’s virtual ESG Summit.

ESG assurance

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Path to ESG assurance a crawl-walk-run exercise

2023-09-21T14:23:00+01:00By

It’s important companies exercise patience when determining when to begin an assurance engagement, experts explained during a session at CW’s virtual ESG Summit.

Auditcommunication

News Brief

PCAOB proposal increases stakes on auditor negligence

2023-09-19T18:53:00+01:00By

Rule amendments proposed by the Public Company Accounting Oversight Board would enable the agency to penalize individual auditors more easily when their conduct is deemed to have contributed to violations by their firms.