The Securities and Exchange Commission announced its first enforcement actions for auditor independence failures. I expect your auditors may have a bunch of new restrictions and questionnaires when it is time for the annual audit. The SEC announced two separate enforcement actions, both involving Ernst & Young. In one case, Gregory S. Bednar got too cozy with … Read more »
Tag: Audits
The SEC Goes After the Gatekeepers: Grant Thornton Edition
“Audit firms must be held responsible when systemic failures such as inadequate engagement procedures, staffing, or supervision cause the firms’ work to fall significantly short of expected standards, particularly when multiple audits and engagements are involved.” – Andrew J. Ceresney, Director of the SEC’s Division of Enforcement. The SEC recently brought separate cases against senior … Read more »
The SEC Goes After the Gatekeepers
When a fraud is uncovered, the Securities and Exchange Commission not only wants to get the fraudsters, it also wants to get those who should have stopped the fraud: the gatekeepers. The SEC recently brought a case against an investment advisory firm and its CEO for fraudulently inflating the values of investments in the portfolio … Read more »