This year we have been outspoken critics of the Big Four’s auditing “prowess.” See “The Auditor’s Expectations GAP…Not Again! Excuses, Excuses, Excuses!” and “Who Really Cares About Auditor Rotation? Not Us!” Each of these commentaries implicitly, if not explicitly, called on these firms to make substantive, meaningful changes to their audit models so that they [...]
Recently, we enjoyed a wonderful article titled “Buyers Beware: The Goodwill Games,” by Scott Thurm who discussed an interesting rubric by which to evaluate goodwill’s value: the ratio of a company’s goodwill to the total entity’s market value. Thurm seems to suggest that companies whose goodwill exceeds market capitalization may be prime candidates for future [...]
On March 1 COSO issued a “thought paper” entitled, “Enhancing Board Oversight: Avoiding Judgment Traps and Biases.” The presumed contribution of this publication is a five-step decision-making algorithm that boards of directors can use to enhance professional judgment.
If history repeats itself, and the unexpected always happens, how incapable must Man be of learning from experience. George Bernard Shaw, Irish dramatist & socialist (1856 – 1950) Darn you Caleb Newquist for depressing us with yet another example of how Big Four accounting firm leaders think, not to mention [...]
With Christmas nearly upon us, these two Grumpy Old Accountants have become a bit melancholy (not totally unexpected at this time of year given our advancing ages), and have decided to ask Santa for some help in restoring the glory of our beloved accounting profession. The result: our Christmas “wish” List for Santa.