Accounting & Auditing


U.K. Parliament

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New U.K. government moves to transform FRC into ARGA

2024-07-19T13:28:00+01:00By

Within two weeks of gaining power, the U.K.’s newly elected Labor government has confirmed its intention to beef up the audit regulator and strengthen corporate governance.

Audit

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FRC dings MacIntyre Hudson $156K over public interest entity violations

2024-07-15T16:41:00+01:00By

The U.K.’s Financial Reporting Council fined audit firm MacIntyre Hudson (MHA) and two employees for breaching the agency’s requirements.

PwC building

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Lessons from PwC’s failure to squelch dissent in the ranks with ‘silent layoffs’

2024-07-12T10:49:00+01:00By

It’s been a trying time for staff at firms with redundancies, affecting morale as layoffs mount amid an effort to silence dissent in the ranks for those departing.

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Ex-Outcome Health execs sentenced for overbilled ad revenue, misleading auditor

2024-07-02T20:35:00+01:00By

Three former executives of Chicago-based Outcome Health, a healthcare technology company, were sentenced for misleading an auditor, clients, lenders, and investors about a scheme to sell $45 million in overbilled advertisements.

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Silvergate Bank to pay $63M to Fed, California over BSA/AML deficiencies

2024-07-02T13:50:00+01:00By

Crypto-friendly Silvergate Bank will pay a total of $63 million penalties to California and the Federal Reserve Board to settle charges that its anti-money laundering program failed to properly monitor more than $1 trillion worth of customer transactions.

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On-Demand: A unified approach to close and consolidation

2024-06-26T16:46:00+01:00Provided by

Join Clearsulting and BlackLine as they discuss transformation strategies organizations take to achieve accurate, efficient, and insightful financial results while unlocking future-ready financial operations.

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SEC orders Meta Materials to pay $1M over market manipulation, fraud

2024-06-26T13:54:00+01:00By

A Nevada energy and manufacturing company headquartered in Nova Scotia agreed to pay $1 million to settle charges levied by the Securities and Exchange Commission for alleged market manipulation and fraud, while the agency further investigates its former chief executives.

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CPE Webcast: Risk management at the speed of business

2024-06-25T14:00:00+01:00Provided by

Are your risk management operations keeping up with the speed of business? In today’s digitized and interconnected world, organizations face increasing risk at a rapid pace.

Real estate accounting

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CFPB proposes $3.95M fine against Freedom Mortgage over repeated data errors

2024-06-20T17:09:00+01:00By

Freedom Mortgage Corp. would have to pay a $3.95 million fine and carry out regular auditing and testing of its loan data under a proposed order by the Consumer Financial Protection Bureau.

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Ex-Synchronoss CFO fined, banned over SOX violations

2024-06-17T13:52:00+01:00By

The former chief financial officer at Synchronoss Technologies was fined a ban from the industry for widespread Sarbanes-Oxley Act violations.

AI Law

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Former CEO of AI recruiter Joonko charged with $27M fraud

2024-06-12T22:14:00+01:00By

The former chief executive officer of closed AI recruitment startup Joonko faces up to 40 years in prison and the potential of penalties levied by the Securities and Exchange Commission for allegedly defrauding investors of more than $27 million.

Accounting trends

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PCAOB Chair Williams appointed to second term

2024-06-12T01:46:00+01:00By

Erica Williams was reappointed to a second term as chair of the Public Company Accounting Oversight Board after an ambitious first three years in the role that have seen the agency work to update many of its standards deemed outdated.

SEC

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HF Foods to pay $3.9M to settle execs’ alleged fraud

2024-06-07T18:18:00+01:00By

Food service distributor HF Foods Group agreed to pay a $3.9 million penalty as part of a settlement with the Securities and Exchange Commission regarding alleged fraudulent conduct carried out by its former chief executive officer and former chief financial officer.

London Financial District

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Reignited calls to tighten up AML in London, crown dependencies

2024-06-06T13:52:00+01:00By

Despite repeated interventions, fines, and negative publicity, money laundering is rife in U.K. financial services firms, according to Deputy Foreign Secretary Andrew Mitchell.

Epoch Times

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Epoch Times CFO charged in $67M money laundering scheme

2024-06-04T18:40:00+01:00By

The chief financial officer of the Epoch Times was charged with laundering at least $67 million in illegally obtained funds to bolster the fortunes of the newspaper and himself.

Accounting

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Autodesk says no restatements following accounting probe

2024-06-03T17:35:00+01:00By

Software company Autodesk said it won’t restate several years of financial statements following an audit committee investigation into potential accounting misconduct.

GHG emissions

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Treasury, other agencies issue voluntary carbon market principles

2024-05-28T19:20:00+01:00By

The Treasury Department and other U.S. agencies announced a coordinated federal policy concerning carbon credits and other voluntary incentives to encourage businesses and agriculture to cut their carbon footprints.

AuditTransparency

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Broadway Financial discloses ICFR weaknesses due to training shortfalls

2024-05-24T16:27:00+01:00By

Los Angeles-based bank holding company Broadway Financial Corp. disclosed in a public filing weaknesses discovered in its internal control over financial reporting because of training shortfalls.

Audit

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PCAOB dings MaloneBailey $400K over ‘pervasive’ quality control violations

2024-05-23T16:35:00+01:00By

Audit firm MaloneBailey agreed to pay a $400,000 fine to settle allegations levied by the Public Company Accounting Oversight Board over “pervasive” quality control violations.

DOJ

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DOJ orders Evoqua to pay $8.5M over admitted securities fraud

2024-05-16T18:52:00+01:00By

Evoqua Water Technologies agreed to pay $8.5 million as part of a nonprosecution agreement with the Department of Justice to settle admitted criminal charges related to fraudulent revenue recognition.

Lease accounting

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SEC chief accountant calls out audit leadership culture

2024-05-15T18:52:00+01:00By

Staff at the Securities and Exchange Commission have observed instances of audit firms setting poor examples for junior-level employees by failing to properly discipline senior leaders found to have breached ethical standards, according to Chief Accountant Paul Munter.

Crowe

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Crowe U.K. dinged $181K by FRC for Aseana Properties audit failures

2024-05-14T16:30:00+01:00By

Crowe U.K. was assessed a penalty of £144,000 (U.S. $181,000) by the U.K. Financial Reporting Council for failures in its audit of Aseana Properties Limited’s financial statements for the year ended Dec. 31, 2019.

AuditAdvice

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PCAOB reestablishes its fundamentals with new standards

2024-05-14T15:30:00+01:00By

The Public Company Accounting Oversight Board adopted two new standards that address key audit areas upon which it was relying on benchmarks established more than 20 years ago.

Johnny Rockets

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FAT Brands on defense over DOJ, SEC accounting misconduct allegations

2024-05-13T17:22:00+01:00By

Restaurant operator FAT Brands said it would contest charges announced by the Department of Justice regarding violations of the Sarbanes-Oxley Act related to personal loans made to executive officers.

London business district

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FRC fines PwC, EY for London Capital & Finance audit failings

2024-05-07T18:58:00+01:00By

Big Four firms PwC and EY were each penalized by the Financial Reporting Council for alleged shortcomings during their respective audits at collapsed investment firm London Capital & Finance.

Accounting fraud

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‘Sham audit mill’: SEC fines, permanently suspends BF Borgers

2024-05-03T14:27:00+01:00By

BF Borgers was all but shuttered by the Securities and Exchange Commission after the agency accused the firm of massive fraud impacting more than 1,500 SEC filings audited over a 2 1/2-year span.

KPMG

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​PCAOB removes redactions on 2022 KPMG inspection

2024-05-01T15:57:00+01:00By

The Public Company Accounting Oversight Board published the full results of its 2022 inspection for Big Four firm KPMG after its initial report contained more than two dozen redactions.

Accounting

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Accountancy bodies urge ethical behavior amid exam cheating scandals

2024-04-25T12:50:00+01:00By

Trust in the integrity of corporate finance and auditing is vital, but repeated scandals over exam cheating at the largest multinational firms are denting faith in the system globally.

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ADM CFO to depart amid accounting probes

2024-04-24T18:42:00+01:00By

Food processing company ADM announced Chief Financial Officer Vikram Luthar, who was placed on administrative leave in January amid a probe into the company’s accounting practices, will resign.

ESG vector

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Report: Poor awareness of supply chain disclosure regs leaving firms exposed

2024-04-23T15:44:00+01:00By

Compliance failures in the supply chain are hampering organizations’ efforts to implement environmental, social, and governance initiatives and meet disclosure requirements, according to a new report by U.K. law firm Burges Salmon.

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CPE Webcast: Mitigating risk: Strengthening control and compliance

2024-04-18T14:00:00+01:00Provided by

Today’s compliance professionals face increasing pressures from talent shortages, a rapidly evolving regulatory landscape, and rising transaction volumes—increasing both complexity and risk.

KPMG

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KPMG Netherlands fined record $25M by PCAOB for exam cheating

2024-04-10T18:35:00+01:00By

KPMG Netherlands agreed to pay a record $25 million penalty levied by the U.S. Public Company Accounting Oversight Board for allegedly allowing widespread cheating by employees on internal training exams and misinforming regulators about the misconduct.

Grant Thornton

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Grant Thornton UK dinged $51K for pension fund audit lapses

2024-04-09T17:23:00+01:00By

Grant Thornton UK was assessed a penalty of £40,000 (U.S. $51,000) by the Financial Reporting Council for alleged procedure failures affecting the firm’s audit of a local authority’s pension fund.

SEC

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Legal pushback prompts SEC to stay climate-related disclosure rule

2024-04-05T16:40:00+01:00By

The Securities and Exchange Commission delayed implementation of its climate-related disclosure rule until the courts can rule on appeals filed in response to the controversial policy.

Accounting fraud

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Ebix: SEC probe into short seller claims closed

2024-04-03T05:04:00+01:00By

Ebix announced the Securities and Exchange Commission closed an investigation into allegations against the software company’s accounting practices raised in a short seller report.

PwC building

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PwC fined $2.75M by PCAOB for independence process breakdowns

2024-03-29T15:39:00+00:00By

Big Four audit firm PwC was assessed a $2.75 million penalty by the Public Company Accounting Oversight Board for failures in its auditor independence processes related to a 2018 engagement.

Chemours

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​Chemours: DOJ, SEC probing exec accounting misconduct

2024-03-28T14:22:00+00:00By

Chemours disclosed it received requests for information from the Department of Justice and Securities and Exchange Commission regarding findings from an internal review into alleged accounting misconduct by several of its top executives.

Whistleblower vector

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NAVEX whistleblower report finds third parties lead on business integrity

2024-03-27T21:27:00+00:00By

A new report on corporate whistleblowing and hotline trends in 2023 found reporting volume at an all-time high, with key disparities uncovered between reports filed by third parties and those filed by employees.

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Equinix probing short seller accusations amid DOJ scrutiny

2024-03-25T19:48:00+00:00By

Data center owner Equinix disclosed it launched an independent investigation to review matters referenced in a recent short seller report that also caught the attention of the Department of Justice.

KPMG

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PCAOB fines KPMG China partners combined $150K over audit violations

2024-03-21T17:50:00+00:00By

The Public Company Accounting Oversight Board imposed collective fines totaling $150,000 against three partners at KPMG China for violations of standards related to their audit work at education service provider Tarena International.

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Short seller accuses Equinix of ‘selling AI pipe dream,’ accounting manipulation

2024-03-20T19:41:00+00:00By

Data center owner Equinix boasts artificial intelligence as a boon to business when power consumption costs related to implementing AI could be detrimental to its profitability, according to short seller Hindenburg Research.

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Ex-Stericycle finance director charged for bribery scheme role

2024-03-20T18:17:00+00:00By

A former finance director at medical waste disposal company Stericycle faces Department of Justice charges for his alleged role in a bribery scheme that led the company to an $84 million settlement regarding violations of the Foreign Corrupt Practices Act.

ESGReporting

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Experts: Legal noise around SEC climate disclosure rule no excuse for standing still

2024-03-20T16:03:00+00:00By

Legal experts are advising their public company clients to move forward with plans to comply with the SEC’s climate-related disclosure rule, despite lawsuits and other challenges being brought against the controversial policy in the aftermath of its approval.

WhistleblowerEmployee

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CFTC awards $1.25M to compliance/audit whistleblower

2024-03-15T11:41:00+00:00By

The Commodity Futures Trading Commission announced a landmark whistleblower award of approximately $1.25 million to an individual in an internal compliance or audit function who came forward with information on misconduct occurring at his or her employer.

Auditinspection

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The auditor’s role in supply chain due diligence

2024-03-14T17:54:00+00:00By

Although compliance should be the company’s primary responsibility, auditors have become the last line of defense and are getting pressured and blamed for supply chain issues, including instances of child labor. Is this expected to become the normal for the profession?

Climate change ideas

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Study: Climate transition impact reporting still lacking

2024-03-14T14:15:00+00:00By

Large polluters are failing to account for climate change impact and adaptation, but policymakers need to harmonize disclosure requirements to drive coherent action.

ADM

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DOJ joins SEC in probing ADM accounting practices

2024-03-13T18:01:00+00:00By

ADM disclosed the Department of Justice joined the Securities and Exchange Commission in probing the food processing company’s accounting practices.

Chemours

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Chemours says probe found accounting misconduct by execs

2024-03-08T16:09:00+00:00By

Chemours said an internal review into the actions of senior managers alleged to have engaged in accounting misconduct uncovered violations of the chemicals company’s code of ethics regarding the promotion of full, fair, accurate, timely, and understandable disclosure.

2022-pcaob-inspection-reports

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PCAOB 2022 inspection reports: Big Four setbacks; KPMG redacted

2024-03-07T15:31:00+00:00By

Three of the Big Four audit firms saw increases to the deficiency rates observed in their latest Public Company Accounting Oversight Board inspection reports, while KPMG had its results redacted.

SEC

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Concessions can’t save ‘cursed’ SEC climate disclosure rule from scrutiny

2024-03-07T00:02:00+00:00By

The Securities and Exchange Commission finally approved its ground-breaking climate-related disclosure rule, nearly two years since it was originally proposed. Though the agency significantly watered down aspects of its proposal, the rule is already facing the prospect of legal challenge.