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Join the Securities Litigation and Enforcement Group on LinkedInSEC Charges Audit Firm Marcum LLP for Widespread Quality Control Deficiencies
The Securities and Exchange Commission today charged audit firm Marcum LLP with systemic quality control failures and violations of audit standards in connection with audit work for hundreds of special purpose acquisition company (SPAC) clients beginning at the latest in 2020. The SEC’s order also found that Marcum’s deficiencies were not limited to SPAC clients, […]
PwC and KPMG drawn deeper into Brazilian retailer’s accounting scandal | Financial Times
The accounting firms PwC and KPMG have been drawn deeper into the scandal over collapsed Brazilian retailer Americanas after the publication of internal correspondence showing how the company hid billions of dollars of debt. Americanas’ new management told the Financial Times that it was seeking “context” to explain correspondence between former executives and the two […]
PricewaterhouseCoopers to Pour $1 Billion Into Generative AI – WSJ
PricewaterhouseCoopers LLP plans to invest $1 billion in generative artificial intelligence technology in its U.S. operations over the next three years, working with Microsoft Corp. and ChatGPT-maker OpenAI to automate aspects of its tax, audit and consulting services. *** Once the models are fully trained and tested, Mr. Kande sees the technology being used to […]
EY gets banned from new audit business in Germany | The Economist
EY just can’t get a break. The accounting-and-consulting giant is being sued for $2.7bn by the administrators of nmc, a London-listed hospital operator it had audited and which went into administration after understating debts by $4bn. ey is being investigated by the Financial Reporting Council (frc), a British regulator; the firm denies the administrators’ claims […]
Auditors Didn’t Flag Risks Building Up in Banks – WSJ
When KPMG LLP gave Silicon Valley Bank a clean bill of health just 14 days before the lender collapsed, the Big Four audit firm flagged potential losses on loans as a so-called critical audit matter. But the audit opinion was silent on what actually brought down the bank—its unrealized bond losses and ability to hold […]
SEC Charges Private Fund Auditor and Audit Engagement Partner with Improper Professional Conduct
The Securities and Exchange Commission today announced settled charges against Spicer Jeffries LLP, an audit firm based in Denver, and audit engagement partner Sean P. Tafaro, for their improper professional conduct in connection with audits of two private funds. According to the SEC’s order, during the audit planning stages, Spicer Jeffries and Tafaro assessed that […]
Why Was KPMG Still Auditing Silicon Valley Bank? – Bloomberg
The main lessons from SVB’s collapse surround the board’s poor risk management and banking supervisors’ failures. But there may well be lessons on audit quality too. The US Securities Exchange Commission and the Public Company Accounting Oversight Board should be asking if auditors have sufficient understanding of banking business models to provide a useful supporting […]
KPMG Gave SVB, Signature Bank Clean Bill of Health Weeks Before Collapse – WSJ
Silicon Valley Bank failed just 14 days after KPMG LLP gave the lender a clean bill of health. Signature Bank went down 11 days after the accounting firm signed off on its audit. What KPMG knew about the two banks’ financial situation and what it missed will likely be the subject of regulatory scrutiny and […]
China Urges State Companies to Drop PWC, KPMG, Deloitte, EY on Data Risk – Bloomberg
Chinese authorities have urged state-owned firms to phase out using the four biggest international accounting firms, signaling continued concerns about data security even after Beijing reached a landmark deal to allow US audit inspections on hundreds of Chinese firms listed in New York. China’s Ministry of Finance is among government entities that gave the so-called […]
Binance Signals Full Audit for Crypto’s Biggest Exchange Remains Some Way Off – Bloomberg
Binance, the world’s largest digital-asset exchange, indicated a full audit of its assets and liabilities is some way off amid calls for more transparency following the collapse of rival FTX. The company’s goal is to hire an auditor for the whole balance sheet but big accountants are still learning about the crypto sector, which lacks […]