• Fraud Investigations vs. Audits

    After management becomes aware of a potential fraud and decides that a fraud investigation is necessary, the process of creating a team, mapping the investigation plan, and requesting information begins. An organized approach is the best way to ensure that […]

  • EY Charges Related to Auditor Independence

    An interesting story popped up last week about charges the Securities and Exchange Commission (SEC) brought against Ernst & Young (EY) and current and former partners. The current partner is James Herring, and the former partners are James Young and […]

  • Changes to Sarbanes Oxley?

    This week an article in the Wall Street Journal explored whether there might be some changes coming for Sarbanes Oxley. With President Trump talking about rolling back regulations, business groups that want Sarbanes Oxley softened may get their way. Sarbanes […]

  • What is an Accounting Review?

    An independent financial statement audit done by external auditors is the most extensive attest service provided by auditors, and it is still limited. A review of financial statements by an independent auditor is even more limited in scope. Reviews amount […]

  • Marc G. Nochimson, CPA, Medifast, and Deficient Audits

    Alternative Title: Marc Nochimson, CPA makes the case FOR publicly identifying audit partners. (You really need to know if a goof like this was the engagement partner!) In 2013, Marc G. Nochimson, CPA entered into a settlement agreement with the […]

  • The Golden Era of White Collar Crime

    Sam Antar is a legend in the fraud industry. He was the CFO of Crazy Eddie, an electronics retailer which pulled off (for a time!) a massive fraud in the 1980’s. He was interviewed by CNNMoney while attending the New […]

  • Benjamin Wey Threatens Investigative Reporter Francine McKenna

    Francine McKenna is an investigative reporter who focuses her writings on the auditing profession. She blogs at re: The Auditors, and also writes for financial publications such as Forbes, The Financial Times, American Banker, and more. In February, Ms. McKenna […]

  • Mandatory Auditor Rotation is Dead

    Almost two years ago, I wrote about a PCAOB proposal that would require companies to rotate auditors every 5 to 10 years.  The theory was that forcing companies to change auditors regularly would make audits better, because fresh eyes on […]

  • Expert in Koss Case Blames Michael Koss and Management for Fraud

    It has been almost four years since the massive fraud committed by Sujata Sachdeva against her employer, Koss Corp., was uncovered. A year after the discovery, Koss sued Park Bank for failing to find the fraud.  The company says that […]

  • Mind the Expectation Gap (Guest Post at FEI Financial Reporting Blog)

    Yesterday Financial Executives International (FEI) ran a guest post by me on their Financial Reporting Blog. The introduction is below, and you can read the entire article about the expectation gap between auditors and the users of financial statements here. […]