An entire generation has seen their dream of retirement shattered by the failure of the accounting profession. CPAs are supposed to be the “watchdogs” and “gatekeepers” that make sure company financial statements are what they say they are. Instead, the past 15 years have dealt us a “dot-com” crisis, the 2002 financial reporting frauds (with [...]
A curious article made the first page of the Wall Street Journal last Thursday. Shayndi Raice and Nick Wingfield wrote that a non-GAAP measure employed in Groupon’s S-1 has attracted the attention of the SEC (“Groupon’s Accounting Lingo Gets Scrutiny”). We wonder why.
Washington debates over the debt ceiling remind us why we haven’t considered careers in politics—we aren’t that irrational or narcissistic. We actually do care for the public welfare. As such, we offer our accounting expertise in general and our expertise specifically in budgeting to weigh in on the discussion. This is important because the unrestrained [...]
An old metaphor features a soldier who watches a raging battle from afar and, when the skirmish is over, proceeds to bayonet the wounded. Credit rating agencies are like this proverbial soldier; whatever information they proffer generally comes much too late to benefit anybody. They may send out red flags, but these signals often come [...]
Congratulations to Jonathan Weil for recently unmasking KPMG’s shoddy audit work at Alterra Capital Holdings Ltd. (ALTE) in Bermuda. Once again we are left questioning whether the Public Company Accounting Oversight Board (PCAOB) is fulfilling its stated mission “to protect the interests of investors and further the public interest” when it refuses to disclose the [...]