Overstock continues to mislead investors with phony EBITDA calculation
In the past, I’ve discussed the improper EBITDA numbers reported by Overstock.com (NASDAQ:OSTK). It comes as no surprise that the con game continues with Overstock’s latest reported numbers.
The SEC rules are very simple. “EBITDA” refers to a specific calculation, which is “earnings before interest, taxes, depreciation, and amortization.” Overstock.com and CEO Patrick Byrne have taken [...]
An opinion on limiting auditor liability
Jack Cieslieski at Accounting Observer wrote a piece auditor liability. Auditing firms have been seeks caps on their liability for failed audits. Large firms are afraid that they might end up in the same trouble Arthur Andersen found themselves in post-Enron: Huge liability put them out of business.
But Jack makes a very interesting observation: Auditors [...]
The end of Sarbanes-Oxley?
Auditors and consultants around the country would like to string me up for my vocal dislike of Sarbanes-Oxley. I frequently moan that the cost is too high, the results are too poor, and consumers are fooled into thinking there’s been a solution to the fraud problem when there hasn’t.
But Sarbanes-Oxley consulting is a billion-dollar industry.A [...]
The cost (and risks) of becoming an audit partner
Ever since my days as a staff auditor at Arthur Andersen, I’ve wondered what it costs to become a partner at a large firm. It’s obviously not something that is widely discussed with staff, so the youngsters all remain clueless.
But Francine McKenna of re: The Auditors has finally answered my question. She points to a [...]
One accountant’s argument against IFRS
Al Rosen, a forensic accountant and principal of Rosen & Associates in Toronto wrote about his opinion on IFRS (International Financial Reporting Standards) in Canadian Business magazine.
The U.S. might be moving from GAAP (Generally Accepted Accounting Principles) to IFRS, although there isn’t hasn’t been a final decision or a timeline for doing so. The problems [...]
IRS audit red flags
I wrote a couple of posts on some common IRS audit red flags shortly after tax season ended and never finished the list. So here are a few more items that might cause the IRS to want to look at your tax returns a little more closely.
The IFRS impact on accounting education in the U.S.
A fellow AOL blogger, Victoria Erhart, wrote a fantastic piece on Bloggingstocks,
GAAP vs. IFRS: New accounting rules could mean trouble.She looks at the problems that will surely come up if the U.S. switches to International Financial Reporting Standards (IFRS).
Currently, U.S. accounting programs teach Generally Accepted Accounting Principles (GAAP) because that’s what’s used in the [...]
Patrick Byrne: Do as I say, not as I do.
Patrick Byrne, CEO of Overstock.com (NASDAQ:OSTK) has been on a crusade against naked short selling for a couple of years (or more?). It is currently his position that naked short selling is bad. He confirms his belief in this statement on Overstock.com:
Patrick Byrne is waging a fight with Wall Street over naked short selling. He [...]
UPS rats out FedEx
Interesting story from Bloomberg:
A secret report from a lobbyist who represents United Parcel Service Inc. prompted an Ohio state investigation into employment practices of FedEx Corp., leading to a finding that FedEx owed back taxes and interest.
Kenneth Kies, a Washington tax lawyer and lobbyist whose firm has been paid $540,000 by UPS since 2002, sent [...]
Auditor reveals how risky mortgages were allowed to go through
NPR featured a story on Tracy Warren, an auditor at Watterson-Prime, a quality control contractor who reviewed subprime loans for investment banks before they were sold on Wall Street. (The biggest client of Watterson-Prime? Bear Stearns.) She has over 25 years of experience in mortgage lending and her job was to find bad loans and [...]
