Archive for: March, 2011

Killing Conflict of Interest in Compensation Committees Pressed on in SEC Ruling

Killing Conflict of Interest in Compensation Committees Pressed on in SEC Ruling

Stock trading regulators proposed Wednesday to enforce among national securities exchanges a listing standards that would ensure no conflict of interest weighs on the members of the traded companies’ compensation committee and compensation advisers. The Securities and Exchange Commission was all thumbs up when its officials voted for the proposal whose mandate has been drawn [...]

Public Confidence Targeted in New APB Practice Note

Public Confidence Targeted in New APB Practice Note

The Practice Note released by the Auditing Practices Board (APB) that contains revision of Practice Note 19 (The audit of banks and building societies in the United Kingdom) aims to enhance “public confidence in the audit process and the quality and relevance of audit services in the public interest.” Richard Fleck, APB Chairman, said that [...]

Hackers Breach Australia’s Cyber Security System

Hackers Breach Australia’s Cyber Security System

Alleged Chinese hackers are reported to have penetrated the cyber security system of Australia despite tight measures adopted by its parliament, compromising computers in the office of Prime Minister Julia Gillard and several other MPs. Australian government was shocked upon seeing a number of indications pointing to attempts of hacking into the Parliament’s computer system, [...]

Criminal Charges Filed Against Chemist for Disclosing Confidential Information

Criminal Charges Filed Against Chemist for Disclosing Confidential Information

Using his position as chemist of the US Food and Drug Administration (FDA), Cheng Yi Liang illegally traded several confidential information of the government office involving drug approval decisions and raked in about $4 million in profits from the stealthy transactions. The Securities and Exchange Commission claimed in a complaint filed before the US District [...]

Ailing Retail Store Calls in Deloitte to Wind Up Sale

Ailing Retail Store Calls in Deloitte to Wind Up Sale

Deloitte administrators are now seeking buyers for the failed fashion retail store in Colorado as it declared insolvency after creditors scrapped in a meeting the proposal asking support for the ailing business. Colorado Group, which continues to sustain its debts, is now placed in receivership, covering its 434 branches in Australia and New Zealand. The retail store’s [...]

Avalanche of Customers Swarms BofA After Card Security Breach

Avalanche of Customers Swarms BofA After Card Security Breach

The past days have been full of complaints from customers of Bank of America whose every single transaction has been massively denied by the system, possibly due to an unidentified card security breach according to officials. The most common instance indicating that BofA may be in a card security compromise involves declined debit cards in [...]

Tied Legs of Investment Companies After Fraud Attempt

Tied Legs of Investment Companies After Fraud Attempt

With false assurance of protected investments through a ‘lock box account’, two investment companies in Connecticut were able to extract hundred millions of dollars from hedge funds starting 2001 to 2008 by selling unrealized promisory notes to investors. In a subsequent settlement with Securities and Exchange Commission, however, Marlon Quan, owner of the investment companies [...]

‘Titanic Falls for Tip of Iceberg’ As Official Says NZ Fraud Report Misses Real Scale

‘Titanic Falls for Tip of Iceberg’ As Official Says NZ Fraud Report Misses Real Scale

KPMG’s fraud report released this year does not reflect the real magnitude of how much financial crime has been committed in New Zealand companies though it has sparked debates over the matter, according to head of Serious Fraud Office (SFO) Adam Feeley. The fraud report drawn from a study conducted by KPMG from 2008 to [...]

On Fire: Market Dominance of Big Four in Banking Sector

On Fire: Market Dominance of Big Four in Banking Sector

Not only questions about the role of auditors in the 2008 economic crisis are being hurled against the Big Four audit firms but also their concentration in the banking sector. This is the new scenario in the latest development of the investigation into how Deloitte, PricewaterhouseCoopers, KPMG and Ernst & Young discharged their duties in [...]

‘Suspend’ Share Trading, Holdings Company Pleads

‘Suspend’ Share Trading, Holdings Company Pleads

Chinese holdings company Gaoxian Fibre Fabric has called for a suspension in its share trading following dubious bank balances in its subsidiaries as reported by auditors from Ernst & Young. Following the call to halt its share trading way back in March 2010, China Gaoxian Fibre Fabric Holdings Ltd moves to bring the downtime to [...]

Closure of Manchester Clothing Line Leaves 204 Jobless

Closure of Manchester Clothing Line Leaves 204 Jobless

‘Poor trading condition’ has crippled a clothing line in Manchester as Ernst & Young administrators are seeking buyers of the defunct business, sending home 204 employees jobless. Henley’s Clothing adds up to the number of clothing line businesses that have been going bust in recent months, the most recent of which being the British store, [...]

Post Economic Crisis: Auditors Rebuilding Businesses but Overlooking Risks

Post Economic Crisis: Auditors Rebuilding Businesses but Overlooking Risks

A recent survey conducted by PricewaterhouseCoopers indicated a high level of responsibility that internal auditors have on their shoulder to help businesses grow after their massive setbacks during the economic crisis. But alongside their opportunity to support business growth, internal auditors are shown to be overlooking the risks associated with strategies involved. PwC’s seventh Global [...]

No Fraud Detected in Financial Reporting This Year. Deloitte Says…

No Fraud Detected in Financial Reporting This Year. Deloitte Says…

In contrast to the six percent of listed companies that had issues with their financial reporting in 2009, no indication of fraudulent disclosure has been detected by Deloitte in its latest survey among 130 firms based on their 2010/11 interim reports. The results of the survey came after the Financial Reporting Council has launched the [...]

St. Patrick’s Sale on Consulting Services Market to Boost Performance

St. Patrick’s Sale on Consulting Services Market to Boost Performance

Expected to wind up in two months time, the deal between a consulting services firm RWD Technologies LLC and a solutions provider General Physics Corporation initiated by KPMG’s corporate finance arm is expected to bring to the next level the market performance of both firms, according to an executive. RWD Technologies LLC’s consulting services, based [...]

Corrupted Private Bank Puts Deloitte’s Contract to a Halt

Corrupted Private Bank Puts Deloitte’s Contract to a Halt

The United States Agency for International Development (USAID) has suspended on March 15, 2010 the ongoing contract of consulting and accounting firm Deloitte with a private bank in Afghanistan following an investigation sponsored by USAID inspector general that showed ommission over a massive corruption leading to Kabul Bank’s collapse. Deloitte is the second firm from [...]

Cyber Bullying Busters: Deloitte in India

Cyber Bullying Busters: Deloitte in India

The latest development in Deloitte’s consulting services shows its resolve to bring the fight against cyber bullying to the next level as the firm has joined efforts with India’s data security authorities to come up with a manual that will help in bringing mobsters to court using scientific method of investigation. The manual against cyber [...]

Malaysian PM’s Online Greeting Met with Privacy Questions

Malaysian PM’s Online Greeting Met with Privacy Questions

After sending his online greeting to millions of Malaysians through emails and text messages, Prime Minister Datuk Seri Najib Abdul Razak has had to answer the questions regarding privacy raised by Fong Po Kuan (DAP-Batu Gajah) and Teo Nie Ching (DAP-Serdang). Asked whether the online greeting violated the principle of data privacy protection, the Prime [...]

Fraud Busters to Hurdle Internal Audit Issues, March 14 – 16, 2011

Fraud Busters to Hurdle Internal Audit Issues, March 14 – 16, 2011

The ACL Services has slated a three-day conference inviting chief audit executives to discuss and share their thoughts on changes in how internal audit serves its purpose and on fighting fraudsters. More than 700 top executives in the audit industry are expected to attend the 2011 Institute of Internal Auditors’ (IIA) General Audit Management (GAM) [...]

Fraught with Corruption: Eastern Cape Health Department Grilled by Forensic Investigation

Fraught with Corruption: Eastern Cape Health Department Grilled by Forensic Investigation

PricewaterhouseCoopers’s forensic investigation has led to conclude that the department of health of Eastern Cape, South Africa lost more than $6.5 million (R45 million) in the last couple of years due to fraud and corruption committed by officials in top levels of the government. The forensic investigation all pointed to specific issues that have been [...]

Global Economic Crisis: What Auditors Have Learned from It

Global Economic Crisis: What Auditors Have Learned from It

The Financial Reporting Council has launched the Panel of Inquiry that will dig up lessons from the 2008 economic crisis based on experiences of both the companies and their auditors and will propose major changes to improve how these firms address going concern and liquidity risks matters. Relevant results of the inquiry will be incorporated [...]