Investigating Integrity

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

A U.S. watchdog agency is preparing to investigate the Federal Reserve and other regulators in order to determine whether they are too lenient on the banks they are meant to police. Questions: 1. What is the strategy to be used in this investigation? 2. Explain the “revolving door” concept that the article mentions. 3. What… Read more »

Deloitte Fined and Banned: Accounting Firm Botches Consulting Engagement Dealing with Bank Regulatory Problems

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

Deloitte was hired by Standard Chartered, a British bank, to independently spot suspicious money transfers routed through its New York branches. However, as the consultants, a final report submitted to state regulators was watered down, indicating misconduct by Deloitte and a lack of autonomy for Standard Chartered’s illicit transfers of billions of dollars on behalf… Read more »

Audit Firm Rotation – Coming to a Theater Near You?

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

On Wednesday, November 30, the Internal Market Commissioner, Michel Barnier, suggested that radical changes are needed for auditing firms. Barnier said recent apparent audit failures at AngloIrish and Lehman Brothers banks, BAE Systems and Olympus “would strongly suggest that audit is not working as it should”. Under Barnier’s plan, the four top firms will have… Read more »