What Sandy Cockrell doesn’t tell you is that the bathtub is the size of William Taft’s.
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Let’s Go Over this Independence Thing One More Time
- Caleb Newquist
- January 5, 2010
To be fair, Thomas Flanagan — having been a partner at Deloitte for 30 years — probably didn’t remember the day that his auditing professor covered independence. If you figure that Tom was in college in the late 1960s, it’s surprising that he remembers anything.
Also, as the vice chairman of the firm, his job was to remind people of their duty to remain independent of the firm’s audit clients. He didn’t actually have to be independent himself. What good is insider information if you’re not going to use it, amiright?
Deloitte had sued Flanagan in Delaware Chancery Court in October 2008 for breach of fiduciary duty, fraud, and breach of contract, saying the 30-year partner who had risen to vice chairman of the firm had secretly hidden trades in shares of Deloitte’s audit clients and lied about it to the firm.
“Because an auditor sells, at base, its independence and integrity, the firm relies heavily on the purported honesty and independence of its professionals,” Vice Chancellor John Noble, of the Delaware Court of Chancery, wrote in his opinion.
Deloitte said in its complaint that starting as early as 2005, Flanagan had made more than 300 trades in shares of Deloitte’s audit clients, including several clients for which he was Deloitte’s advisory partner.Meanwhile, Flanagan specifically told the firm he was not trading in client stocks, which are restricted under the firm’s independence policies, according to the complaint.
Tom must have been a choir boy prior to getting the Vice Chair gig. How else could he have gotten to be such a bigwig if he wasn’t a poster child for integrity? Was he that good of a liar?
Never mind that for a sec. What’s really curious is why the hell a Vice Chairman needed the extra scratch. A comic book collection that would rival Nic Cage’s? Financing a business opportunity? A spendy wife/mistress/pool boy? If you’ve got any thoughts, discuss below and if this story doesn’t clear things up on independence, start crack the auditing textbooks.
Deloitte wins insider trading suit vs. ex-executive [Reuters]
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Deloitte Survey: C-suite Execs are Burned Out, Delusional, and Lack Empathy (And Also Want to Quit)
- Adrienne Gonzalez
- June 29, 2022
There’s some new Deloitte research out this week and it is hi-lar-ious. It seems executives […]
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Deloitte U.K. Hit with Large Fine Over Its Incompetent Auditing of Serco Geografix
- Jason Bramwell
- July 5, 2019
It was Deloitte’s turn on the Financial Reporting Council’s dunk tank today, as the U.K. […]