Attached is an article I wrote for The CPA Journal in its May 2014 edition. The Journal is a double-blind, peer-reviewed publication of the New York State Society of CPAs. The article is How a $53 Million Fraud Went Undetected for 22 Years – Learning from Past Mistakes.
The following story is one I’ve heard from other government auditors over many years. Senior staff without the knowledge or skill to do audit related work creating a negative environment that results in watered-down audit reports. When I encourage staff to speak out, the common refrain is, “I can’t afford to lose my job.” – […]
“Problem audits” aren’t just a U.S. problem. Big accounting firms are producing deficient audits around the world, according to a new survey of 30 countries’ audit regulators—mirroring the experience in the U.S., where regulators have found deficiencies in more than a third of audits by major accounting firms that they have inspected in recent years. […]
From the Globe and MailAn Ontario judge has awarded $85-million in damages to the creditors of long-defunct theatre company Livent Inc., ruling the firm’s auditors at Deloitte & Touche were negligent in their reviews of the company’s 1997 financial statements.http://www.theglobeandmail.com/report-on-business/livent-creditors-awarded-85-million-due-to-auditors-negligence/article17845004/
Three Louisiana pension funds invested a combined $100 million in 2008 in Fletcher Asset Management. Each of the three funds invested from 3.9 percent to 8.6 percent of their assets in Fletcher’s scheme after the firm made a pitch promising to deliver every investor’s dream: high returns with low risk. In fact, the arrangement promised […]