Audit-is-cool is pleased to accumulate
and provide its readers with the news on audit and related topics:
November 24, 2015
CFO Daily News
Auditors
scrutinized by regulators when companies face fraud allegations
Three powerful regulatory entities
were highlighted in the Internal Controls segment of CFO Daily last Tuesday
(Nov 24) –
·
the
Department of Justice (DOJ)
·
the
Securities and Exchange Commission (SEC) and
·
the
Public Company Accounting Oversight Board (PCAOB).
One
of these three formidable entities could get attention whenever financial fraud
allegations arise at any public company. DOJ leads the pack by receiving
complaints and commencing criminal investigation. Collaboratively, the SEC
carries out two federal initiatives aimed at detecting and prosecuting
financial fraud: the Financial Reporting
and Audit Task Force and Operation Broken Gate. PCAOB investigations originate
from several sources, including the PCAOB’s own investigations, information
disclosed in SEC or other agency investigations, or other public sources. The PCAOB has authority to investigate
accounting firms and associated persons primarily to ensure compliance with
professional responsibilities.
Strong
compliance program determines what action or sanction may necessarily be
imposed. Strong internal controls is said to be the key to enable auditors to
do their jobs more effectively and efficiently.
Please
follow link for details:
November 20, 2015
Accounting Today
U.S.:
CPA Pleads Guilty in Accounting Fraud Scheme
Last Wednesday (Nov 18), a New York
CPA firm partner pleaded guilty to participating in a multimillion-dollar
accounting fraud scheme. He performed year-end audits of the financial
statements for an unidentified Florida-based cosmetics company.
“Marc Wieselthier has admitted to
lying about the financial condition of a company to induce banks to lend the
company millions of dollars,” said Manhattan U.S. Attorney Preet Bharara in a
statement. “Relying on false information, the banks made loans that ended up
defaulting with nearly $5 million still owed. Wieselthier now joins his
co-conspirators in awaiting sentencing for his crime.”
Please follow link for details: http://www.accountingtoday.com/news/audit-accounting/cpa-pleads-guilty-in-accounting-fraud-scheme-76480-1.html
November 16, 2015
Accounting Today
PwC
Transforms Audit Practice with Data Analytics
PricewaterhouseCoopers audit practice is
becoming more sophisticated as the firm is leveraging data analytics
technology. The transformation includes documentation or evidence management as
well as audit process automation.
Bill Brennan, managing partner of
assurance transformation at PwC – said:
·
“We’d
like to think that we have been transforming the way we audit for decades,
especially in light of everything that’s been going on in the marketplace,
particularly with the regulatory changes that have impacted us,”
·
“Starting
north of 10 years ago, we introduced to our auditors worldwide Aura. It’s
basically the way we execute the documentation and where our evidence resides
for our audit efforts. Aura is used by almost 100,000 people all around the
world.”
·
“We
automate certain processes that we’ve been doing manually for decades, maybe
even a century,”
·
“The
second piece is process. How can we improve the process by which we execute the
audits, the approach, if you will. We have a tagline called ‘Engagement,
Performance and Quality.’ It takes project management process improvement and
injects it into the equation. You can have the greatest technology in the
world, but if you don’t have good processes, it’s going to be useless. Then the
last thing is people. How do we develop our people? How do we train them? How
do we equip their skills such that they can adapt to the changes in not only
the regulatory environment, but our own audit approach. How can we teach them
to leverage data and analyze data in a wholesome way? You can have a great
tool, but if the people are not equipped to do it, then it’s useless.”
Please follow link for details: http://www.accountingtoday.com/blogs/debits-credits/news/pwc-transforms-audit-practice-data-analytics-76435-1.html
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