How an Agency You’ve Never Heard of Is Leaving the Economy at Risk

David Hilzenrath and Nicholas Trevino of the Project on Government Oversight have written a monumentally important investigative report on the failure of the agency set up following the Enron/WorldCom/MCI/HealthSouth and other accounting scandals to take exactly the actions it was designed for. There is a long Washington tradition of capture of regulatory agencies by industry,…

Time to tackle ‘Big Four’ auditors’ bad behaviour | Descrier News

The Carillion case is just one example in a string of alleged transgressions lighting a fire under the major audit firms, as British policymakers finally confront the need to crack down on the industry. KPMG is still haemorrhaging clients and staff after its extremely controversial work for the Gupta family in South Africa, whose close ties to former…

SOX Internal Controls Provision Creates Investor Value After All

[I]n the longstanding controversy over 404(b), the voice of one constituency has been conspicuous by its absence — and ironically, it’s the very group the regulation supposedly protects: namely the investment community. Whether the provision actually holds value to investors has remained unclear.Now, the January issue of the The Accounting Review, an American Accounting Association journal, includes the…

Exxon Must Face Class-Action Suit Over Climate-Change Accounting – Bloomberg

Bloomberg reports: Exxon Mobil Corp. must face a lawsuit by investors who blamed a drop in the company’s shares on the disclosure that regulators were scrutinizing its reserve accounting related to climate change. U.S. District Judge Ed Kinkeade on Tuesday denied Exxon’s bid to dismiss the suit. Kinkeade wrote that the Greater Pennsylvania Carpenters Pension…

PwC doing double duty as auditor and tax lobbyist – MarketWatch

VEA Vice Chair Nell Minow is quoted in this article about potential conflicts of interest in PwC’s getting lobbying fees from audit clients. Nell Minow, a corporate governance expert and the vice chair of ValueEdge Advisors, told MarketWatch, “There are serious conflict of interest issues when an auditor has a lucrative side project involving its…

Comment Letter on IOSCO Consultation Report on Audit Committee Good Practices from Samantha Ross

Mr. Jonathan Bravo International Organization of Securities Commissions Calle Oquendo 12 28006 Madrid Spain By email: consultation-04-2018@iosco.org Re:      Public Comment on IOSCO Consultation Report on Good Practices for Audit Committees in Supporting Audit Quality   To the Board of the International Organization of Securities Commissions: Thank you for the opportunity to comment on your…