Remember earlier this month when we showed you some images from the Ernst & Young International Intern Leadership Conference? It illustrated just how E&Y rolls out the black and yellow carpet for its interns from across the globe – charter buses, gorilla hugs, and a dude in a Big Bird Yellow tux.
We've uncovered more evidence of the good times had at Disney World this past summer and we thought it would be appropriate to share it with you, especially because most of you have probably never seen Chuck Norris nemesis Jim Turley in a hoodie or in a DJ booth.
So it looks pretty fun although the poor guy on crutches probably didn't get to limbo or climb over the giant spool or do the electric slide or the hula hoop thing. And what about "Stephanie" from Seattle who was already showing up her senior? I don't how that will work for a long-term career prospects.
Speaking of questionable actions, why would organizers opt for a Penn State-esque "WE ARE" chant? Isn't it a little too soon for that?
Please make note of anything else interesting. Oh, and if we could get a set list for JT (or JDawg, I believe?) it would be appreciated.
The PCAOB has issued its annual report on Ernst & Young having given the firm the third degree at its national office and 30 of its 80 U.S. offices. It inspected 58 audits performed by the firm but exactly who is, of course, a big secret (unless you tell us).
There were five “Issuers” that were listed in the report and some form of the word “fail” was used 25 times (that includes the footnotes).
[Issuer A] The Firm failed to adequately test the issuer’s loan loss reserves related to certain loans held for investment. Specifically, the Firm failed to reconcile certain values used in the issuer’s models with industry data, failed to test the recovery rates used in the issuer failed to test the qualitative components of the reserves.
Damn those loan loss reserves!
[Issuer C] The Firm failed to perform sufficient procedures to test the issuer’s allowance for loan losses (“ALL”). The issuer determined the general portion of its ALL estimate, which represented a significant portion of the ALL, using certain factors such as loan grades. Data for this calculation were obtained from information technology systems that reside at a third-party service organization. The Firm relied on these systems, but it failed to test the information-technology general controls (“ITGCs”) over certain of these systems, and it failed to test certain of the application controls over these systems. Further, the Firm’s testing of the controls over the assignment and monitoring of loan grades was insufficient, as the Firm failed to assess the competence of the individuals performing the control on which it relied.
This loan thing appears to be a trend…
[Issuer D] The Firm failed to sufficiently test the costing of work-in-process and finished goods inventory. Specifically, the Firm’s tests of controls over the costing of such inventory were limited to verifying that management reviewed and approved the cost allocation factors, without evaluating the review process that provided the basis for management’s approval.
Hopefully that doesn’t blow back on an A1.
Anyway, you get the picture. The whole report is below for your reading pleasure. E&Y’s got its $0.02 in, however it was short and was mostly concerned about the firm’s right to keep its response to Part II (the non-public part)…non-public:
We are enclosing our response letter to the Public Company Accounting Oversight Board regarding Part I of the draft Report on 2009 Inspection of Ernst & Young LLP (the “Report”). We also are enclosing our initial response to Part II of the draft Report.
We note that Section 104(g)(2) of the Sarbanes-Oxley Act requires that “no portions of the inspection report that deal with criticisms of or potential defects in the quality control systems of the firm under inspection shall be made public if those criticisms or defects are addressed by the firm, to the satisfaction of the Board, not later than 12 months after the date of the inspection report.” Based on this statutory provision, we understand that our comments on Part ii will be kept non-public as long as Part ii of the Report itself is non-public.
In addition, we are requesting confidential treatment of this transmittal letter.
So this doesn’t mean much other than E&Y would prefer that no one know how it managed to tell the PCAOB to fuck right off as nicely as it could.
Remember earlier this month when we showed you some images from the Ernst & Young International Intern Leadership Conference? It illustrated just how E&Y rolls out the black and yellow carpet for its interns from across the globe – charter buses, gorilla hugs, and a dude in a Big Bird Yellow tux. 