AUDITING - ethicssage.com

Audit Firm Professionals Have Cheated on Ethics and Internal Training Exams

Accounting Profession / July 19, 2022

How can it be that three of the big four CPA firms were caught cheating on external and internal ethics and continuing professional education (CPE) courses, given that their role as auditors is to protect the public interest and the capital markets that rely on audited financial statements? My blog today explains what happened and […]

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Do “Modernized” Independence Rule Changes Protect Investor Interests?

Accounting Profession, Workplace behavior / April 5, 2022

Objectivity and Impartiality Replace the Strict Application of Independence Rules In June 2021, the Securities and Exchange Commission (SEC) made amendments effective for certain rules regarding auditor independence requirements (known as Rule 2-01 of Regulation S-X). The intention behind these amendments is to modernize the SEC’s rules governing auditor independence and more effectively focus the

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Should Auditors Rotate Every 109 Years?

Accountability, Accounting Profession / May 29, 2018

The Case of GE and KPMG A new rule adopted by the U.S. Securities and Exchange Commission requires disclosure of the tenure of a public company’s external auditor in the annual report. KPMG recently reported that it has audited GE since 1909. This raises the question of whether there should be mandatory audit firm rotation

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