Please ensure Javascript is enabled for purposes of website accessibility

According to This Dude Who May Have Helped Screw It Up, CliftonLarsonAllen Totally Screwed Up on the Dixon Audit

Meanwhile, back at the horse ranch:

Sam Card says that CliftonLarsonAllen continued to do an audit for the city, despite guidelines that said they should not.

In an October deposition statement, Card said that he and his mother’s small Sterling accounting office, which became Dixon’s contracted auditor after 2005, did not do its own audit work. It only reviewed and signed off on audit work done by Clifton, which allowed one of the nation’s largest firms to keep its account.

Clifton denies Card’s claim.

If Card’s claim is true, a Northern Illinois University legal expert said, both firms’ licenses are in jeopardy.

Card was one of five persons who were interviewed by the city’s attorney, Devon Bruce, in connection with Dixon’s lawsuit against the firms that audited the city’s finances.

This is pretty big. Mainly because this amounts to Sam Card throwing CliftonLarsonAllen (fka Clifton Gunderson) under the bus for their alleged sloppy work, which may or may not have been his sloppy work too.

[Karl] Appelquist [of Clifton] told the Cards that Clifton’s staff would do the work papers and give them to the Cards for a review and signature, according to Card’s deposition. Card said he had not heard of any other such circumstance, where one firm would sign off on another firm’s work, in his 20 years as an accountant, yet he and his mother agreed to it. He said there is no documentation of that agreement.

Asked why Clifton would offer such a plan, Card said: “In my opinion they did not want to lose the client. … If they would have hired, say, a larger firm, the larger firm would have … could have come in and taken over some of the duties that Clifton was doing. Doing the audits. So they would … Clifton would have lost control of the audit and lost that revenue stream.”


Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

Broken lightbulb isolated on white

Kill the Audit Industry, Says Ex-Auditor

In the WaPo opinion pages yesterday one Duncan Mavin, who got his start in the 90s, says the best way to solve the audit industry’s many conflicts is to kill it altogether. He starts the piece summoning the ghost of Enron, as all writers do when discussing what happens when audit goes wrong. Bringing things […]

Treasure chest on the beach

KPMG Gets Sued, Accused of Allowing Pirate-Like Activity at Credit Suisse

Discountenanced Credit Suisse stockholder Gregory Stevenson is suing 29 of Credit Suisseā€™s current and former directors and officers, the bank’s ex-auditor KPMG, and various KPMG henchmen on behalf of investors alleging the firm looked the other way while aforementioned directors and officers plundered the bank for more than a decade. The docket number is No. […]