Approximately ten years ago, the truth emerged about Enron, that once snappy company with a different business model. As the world learned, we should have focused on the ethics, culture, strategy, and business model of the firm, which unfortunately is a very old story.
As the Public Company Accounting Oversight Board considers changes to the audit reporting model, we must ask: is the report really the problem, or is it the audit behind that report.
For several years battles have raged in several courtrooms concerning whether accounting firms have a legal obligation to pay junior accountants overtime. We are sympathetic to the position of the accounting firms, but worry about the soundness of their legal reasoning and conclusions. Do accounting firms have to be consistent in different domains? For example, [...]
Cheating is all around us. Athletics provide a never ending series of ethical disappointments whether it be the use of performance enhancing drugs in bicycling, baseball, and football, the bout fixing in Sumo wrestling, or the recent NCAA rule violations by Ohio State’s football program.
Recently, the Investor Advisory Group (IAG) of the Public Company Accounting Oversight Board (PCAOB) noted two diametrically opposed viewpoints that prompted us to wonder where the accounting profession’s leadership has gone. Not surprisingly, almost three years after the largest global financial crisis, the IAG confirmed what most of us have known: The recent financial crisis [...]