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September 29, 2023

ANR: Flimsy Corporate Investigations; BigLaw Accounting; Do You Attack Email with LIFO or FIFO? | 03.07.14

Beware the false reassurance of corporate probes [FT]
An op-ed from Carson Block of Muddy Waters Research wants investors to be skeptical of those "independent investigations" companies conduct after they've been accused of fraud. He writes that law and accounting firms hired to perform them have little to gain by aggressively seeking out the truth: "Fraudsters have repeatedly duped independent committees and their advisers by showing that they control large cash balances. Often, they do this by borrowing the funds. If directors make it impossible to detect such ruses by limiting investigators’ access to evidence, nobody knows; the entire process is shrouded by the cloak of attorney-client privilege. Accounting firms are also rife with conflicts of interest. Their main line of work is auditing public companies. This makes them unwilling to heap embarrassment on management teams and boards. To do so would be bad for business."

Deferred taxes and VIEs revisited [China Accounting Blog]
Paul Gillis has some "mental masturbation for accountants" this morning that does not disappoint.

Dewey Charges Are Wake-Up Call For BigLaw Accounting [Law360]
When numbers are involved, that's when lawyers FREAK: "Criminal allegations unveiled Thursday that Dewey & LeBoeuf LLP executives had systematically cooked their books over several years to hide a dire financial position will likely send some BigLaw leaders running to the ledgers to ensure their own accounting can withstand the closest scrutiny."

"I'm the only one?"

KPMG chairman speaks at fireside chat [The Collegian]
This article is interesting for a couple of reasons: 1) It's rare to see "KPMG" deconstructed in an article; 2) John Veihmeyer gave some behind the scenes on the Scott London situation: "By that Monday morning, Veihmeyer addressed a group, and shared a list of accomplishments that needed to be completed by 4 p.m. that day. Someone spoke up saying that the firm had more time than those few hours because the information would not be public knowledge by that time. In this instance, Veihmeyer said it would, in fact, be public because KPMG was going to put out a press release on the matter." 

Use the First-In-First-Out Rule to Keep Email Inbox in Shape [Lifehacker]
I prefer this method, however, Amber Setter likes LIFO. They both have their merits.

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