Auditor independence Archives - CFO

EY, Partners Charged With Auditor Independence Violations

EY, Partners Charged With Auditor Independence Violations

The charges may reignite the discussion around the too-cozy relationship of some finance executives and their audit firms.

By Vincent Ryan | August 2, 2021

Curtailing Auditors’ Tax Services For Appearances Brings Higher Rates

Corporate Finance

Curtailing Auditors’ Tax Services For Appearances Brings Higher Rates

The pursuit of perceived auditor independence turns out to be an expensive proposition, a new study reveals.

By Vincent Ryan | June 30, 2020

SEC Planning to Loosen Auditor Independence Rules

SEC Planning to Loosen Auditor Independence Rules

On Monday, the SEC proposed changing the rules to keep auditor committees and auditors from spending time on "non-substantive" rule breaches.

By Vincent Ryan | January 2, 2020

PwC Fined $7M for Audit Independence Violations

Risk & Compliance

PwC Fined $7M for Audit Independence Violations

The SEC says the firm improperly worked on non-audit services including financial software projects for audit clients.

By Matthew Heller | September 24, 2019

RSM Charged by SEC with Violating Auditor Independence Rules

RSM Charged by SEC with Violating Auditor Independence Rules

The accounting firm agreed to a $950,000 penalty and to engage an independent consultant to evaluate its current quality controls.

By Vincent Ryan | August 27, 2019

‘Opinion-Shopping’ Compromises Auditor Independence

‘Opinion-Shopping’ Compromises Auditor Independence

While it may serve the interests of struggling companies, shopping for a favorable audit opinion lessens auditor independence and audit quality.

By David McCann | May 8, 2019

Auditing: Time for an Adjustment?

Revenue Recognition

Auditing: Time for an Adjustment?

Keeping the auditor-client relationship free of conflicts of interest is still a struggle.

By Vincent Ryan | October 23, 2018

Do Big Four Auditors Unfairly Raise Fees?

Risk & Compliance

Do Big Four Auditors Unfairly Raise Fees?

The longer the tenure of a company's Big Four auditor, the greater the fee — even though the effort required of the auditor lessens over time.

By David McCann | May 21, 2018

Auditor Independence Rule Isn’t Tough Enough

Risk & Compliance

Auditor Independence Rule Isn’t Tough Enough

Requiring top corporate executives to be only a year or two removed from a prior job with the company's auditor is insufficient, study suggests.

By David McCann | February 12, 2018

Auditors Can Be Friendly as Well as Skeptical, Study Finds

Auditors Can Be Friendly as Well as Skeptical, Study Finds

Auditors who trust their clients can feel freer to be more skeptical of their financial reporting.

By David Katz | April 19, 2017

EY Fined $9M Over Auditor Intimacy With Clients

Risk & Compliance

EY Fined $9M Over Auditor Intimacy With Clients

The SEC says EY didn't do enough to prevent two former auditors from getting "too close" to finance executives at companies they were inspecting.

By Matthew Heller | September 20, 2016

PCAOB Mulling New Form for Naming Audit Partner

Investor Relations

PCAOB Mulling New Form for Naming Audit Partner

"Form AP" would name the engagement partner but would not be included in the client company's SEC filings.

By Matthew Heller | July 8, 2015

An Auditor Independence State of Mind

Human Capital Management

An Auditor Independence State of Mind

A Billy Joel favorite sparks thoughts of auditor independence.

By Jay Bornstein | April 14, 2015

Firm Accused of Auditor Independence Violations

Firm Accused of Auditor Independence Violations

A partner at L.L. Bradford failed to monitor partner assignments, leading to auditor rotation violations in six public company audits, says the PCAOB.

By Matthew Heller | April 2, 2015

Regulators Crack Down on Auditor Independence Violators

Regulators Crack Down on Auditor Independence Violators

“To ensure the integrity of our financial reporting system, firms cannot play the roles of auditor and preparer at the same time,” said an SEC official.

By Matthew Heller | December 8, 2014