Please ensure Javascript is enabled for purposes of website accessibility
December 5, 2022

Footnotes: That’s a Bummer, Detroit; A New Way to Pay Auditors?; Tax-Avoidance Maps | 07.18.13

Detroit Seeks Bankruptcy, Facing Debts of $18 Billion [NYT]

Paying Auditors for Honest Appraisals Auditors are paid by companies they audit, much as rating agencies are paid by companies they rate. This gives auditors an economic incentive to lie on their clients' behalf, even if that puts their reputations at risk. As an old German proverb puts it: Whose bread I eat, his song I sing. […] Now a band of economists, the new breed that dabbles in experiments rather than models, thinks it has evidence that there's a better way: Pay auditors out of a central fund, randomly double-check their work and link pay to accuracy. In short, change the incentives. [WSJ]

Corporate Tax-Avoidance Maps [TBP]

Fitch Predicts Challenges in Applying Lease Accounting Proposals [AT]

IRS inspector general J. Russell George does damage control [Politico]
 
Do Low-Income Taxpayers Cheat? [TaxVox]
 
Family Guy-Simpsons Crossover Episode Planned for Next Year [Gawker]

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

a dog wearing VR

Monday Morning Accounting News Brief: Deloitte on Microtransactions; More EY Split Roadblocks; Have You Become Irritable? | 11.28.22

Happy Monday! Here’s some stuff that’s going on. Several US audit firms told the Financial Times that they had elevated some or all of their crypto-related clients to the status of “high risk”, triggering a more thorough audit that will take longer and lead to higher bills; some clients could ultimately be dropped altogether. KPMG […]

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 […]