September 28, 2020

Anecdotal, Unverifiable Evidence Confirms That Broker-Dealer Audits Are as Bad as You Thought They Were

Digging through the mailbag, I found this little gem:

I'm not surprised broker dealer audits are bad. I used to be on a high profile one and let me tell you I spent so much time to trying to understand the business. At the end of the day, you get a general idea as to the operations BUT almost every time, when you dive into the details, its still a black box. Often times, the details would contradict with the general understanding. This was pervasive all the way up to the partner level. At the end of the day, we just put tickmarks on the stuff we didn't understand and said it agreed to the financial statements with no consideration to risk. Too bad, my methods would've saved the company from being in the news this year in a bad way.
Do you have a story of rampant ghost-ticking to get an engagement done? Email us your stories. 
 

 

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

Three Former KPMG Partners Charged by SEC For Being Dirty, Dirty Cheaters

Just when KPMG thought maybe everyone had forgotten about that whole cheating scandal debacle, the SEC announced Monday it settled charges with three more dirty cheaters who once called the firm home. The Securities and Exchange Commission today announced settled charges against three former KPMG LLP audit partners for improperly sharing answers to internal training exams […]