Peeling away financial reporting issues one layer at a time

» Auditing

The Fallout from SAB 108: A Concrete Illustration of the Need for Mandatory Audit Firm Rotation

I’m going to write about auditing in this post, and my remarks are motivated by a report published by Audit Analytics on the number of restatements engendered by the adoption of SEC [Read More...]

“Big Bath” Accounting at Merrill Lynch: Give Me that Old Time Conservatism

In a story whose main subject was increasing auditor vigilance, the Associated Press wrote as follows on November 2, 2007:

"Merrill Lynch last week reported a bigger-than-expected $8.4 billion in writedowns…. On Oct. [Read More...]

The PCAOB is Auditing the Wrong Auditors

Did you know that:

The Sarbanes Oxley Act requires the Public Company Accounting Oversight Board (PCAOB) to inspect audit firms with one or more public companies as clients at least once every three years, and [Read More...]

IFRS and the U.S. Auditing Profession: Not a Match Made for Investors

About 10 years ago (maybe more… the older I get, the faster time flies), I attended a conference at the SEC where an FASB board member, Michael Crooch, averred that IFRS was no better [Read More...]