Commentary on fraud, scams, scandals, and court cases.
 

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 all facets of the investigation flow smoothly, that staff is …

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 Curt Fochtmann. Separate charges were also brought against the chief …

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 Oxley requires management to assess the internal controls over financial …

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 Securities and Exchange Commission based on his improper professional conduct …

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 wrote about the auditors of AgFeed, a Chinese company involved …