Please ensure Javascript is enabled for purposes of website accessibility
November 26, 2022

Accounting News Roundup: KPMG’s Inspection Report and IFRS Optimism | 12.07.16

KPMG's inspection report

The PCAOB released its inspection report of KPMG for 2015 yesterday and, sorry to say, it was the worst-performing Big 4 firm of the cycle with a deficiency rate of 38 percent. (Full disclosure: I used to work at KPMG and I'm not sorry to say it.) Compliance Week has the full rundown on the performance of all the Big 4: 3) EY: 29%; 2) Deloitte: 24%; 1) PwC: 22%.  But in an interesting twist, PwC's rate is made much worse by the fact that "half of the blown audits called out by inspectors ultimately led to restatements either of the financial statements or the internal control audit opinion." So I guess this is a Pyrrhic victory for PwC? Anyway, here's to one firm — any firm! — breaking the 20% barrier for their 2016 inspections.

IFRS optimism

Although SEC Chief Accountant Wesley Crusher, uh, I mean, Bricker doesn't see IFRS usurping US GAAP any time soon, IASB Chairman Hans Hoogervorst isn't discouraged by all the anti-globalism going around:

Hoogervorst acknowledged that it’s possible that the longtime trend toward growing global investment and trade may be interrupted following the recent political developments. But he said that even if cross-border transactions are reduced, the rationale for common accounting standards is strong as multinational corporations continue to do business and investors keep seeking investment opportunities across the world.

“While the U.K. has decided to leave the EU, it has not yet decided to leave the world,” Hoogervorst said and I can't wait to see how he's proven wrong.

Adventures in non-GAAP accounting

Tatyana Shumsky reports that the SEC's enforcement division is looking closely at companies use of non-GAAP metrics. The division's chief accountant Michael Maloney cited the REIT formerly known as American Realty Capital Properties Inc. as an example due to its "pure falsification of an important non-GAAP measure." In other words, don't customize those custom numbers too much.

Previously, Going Concern…

Megan Lewczyk wrote about a nightmare for IT auditors.

In other news:

Get the Accounting News Roundup in your inbox every weekday by signing up here.

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.

Related articles

woman working on a laptop with a dog beside her

Monday Morning Accounting News Brief: The Leadership Void; KPMG Gets Fined (Again); PwC Ups Leave | 10.3.22

Deloitte launches Global Sustainability & Climate learning program that aims to enhance skills and capabilities of Deloitte people to help address a global societal challenge. Dubai’s financial regulator has provisionally fined KPMG and one of its former partners $2 million over the firm’s auditing of Abraaj, the emerging markets private equity group that collapsed in […]

a woman enjoying a coffee while she reads accounting news with her dog

Monday Morning Accounting News Brief: KPMG Drama; MBA Beats CPA?; ISO: Managers and Senior Managers | 9.26.22

Why is the Ontario Securities Commission examining Canadian audit firm ethics? Spurred by some critical comments, EY UK chair and managing partner Hywel Ball shares his opinion on the EY split: “Audit quality is going to be better.” KPMG and Deloitte alumni are doing some startup automation stuff. KPMG UAE is still working out some […]