Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Olympus sued by 6 banks over accounting fraud; largest in a series of suits

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Bloomberg reports Olympus Sued for $273 Million After 13-Year Fraud.

Six banks filed suit claiming 27.9 billion yen ($273M) damages from the drop in stock price after the fraud was disclosed.

The article says Olympus was sued in November 2012 by a group of investors. That claim was for 19.1B Yen ($186M). That one had been preceded by 14 other suits.

Written by Jim Ulvog

April 16, 2014, 8:43 am at 8:43 am

Posted in Fraud

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Insider trading sentencing watch – London’s trading partner Shaw scheduled to be sentenced May 19

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I’ve not been reading the federal court filings for Mr. Bryan Shaw, partner in crime of former KPMG partner Mr. Scott London. Started looking at them this evening.

Most pertinent information at the moment is that his sentencing hearing is scheduled for May 19, 2014 at 8 a.m.

The sentencing has been postponed several times.

Read the rest of this entry »

Written by Jim Ulvog

April 15, 2014, 20:11 pm at 8:11 pm

Posted in Audits

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London sentencing watch – request filed to continue hearing three days, to April 24

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On 4/14/14, the U.S. Attorney and Scott London’s attorney filed a request to postpone the sentencing hearing for Mr. London from April 21 to April 24.

The reason cited is that Mr. London’s attorney will be out of town on Monday. The filing says the court clerk indicated there is time available in the schedule on Thursday.

The court has not issued the order, but I would assume that it will easily be approved.

So we will wait patiently for a week from Thursday.

Written by Jim Ulvog

April 15, 2014, 19:45 pm at 7:45 pm

Posted in Audits

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How do you keep one rogue employee from destroying your company?

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That is the question asked on my other blog, Nonprofit Update: How do you keep one rogue employee from destroying your company? Or at least prevent a FCPA guilty plea and $108M fine?

That is a question I’ve pondered over the years. Have asked several of my clients the question and haven’t gotten any great answers.

I did get helpful answers from two of my clients, but the circumstances are so specific that I can’t share anything of the conversations.

Good internal controls will help. A great ‘tone at the top’ will go a long ways. Showing in everyday actions and words that ethical behavior is the expected norm will be a powerful message. Aggressively dealing with known behavior that is outside the boundaries will send a powerful message to the organization.

But how do you make sure that some completely out-of-control person doesn’t do something that can threaten the existence of your organization?

See the linked post to read of 4 examples that are in the back of my mind.

Written by Jim Ulvog

April 14, 2014, 8:32 am at 8:32 am

Posted in Other stuff, Pondering

Dates this week read same backwards: 4-13-14

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Hey, I’m an accountant. Numbers fascinate me.

Check out this tweet:

 

days this week same backwards

 

Cool, huh?

Yeah, thought you’d like that.

Written by Jim Ulvog

April 13, 2014, 16:45 pm at 4:45 pm

Posted in Other stuff

Observations from a reader on Scott London’s family assets

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A Mr./Ms. sjenson has been commenting on my blog about some family assets belonging to the London family that have apparently been moved into a Nevada corporation.

You can see the current discussion at an older post, Sentencing recommendation and suggestion for lighter sentence for ex-KPMG partner’s insider trading.

The commenter has several thoughts and questions.

The core of his/her idea seems to be wondering why assets would be moved into a Nevada corporation. If you have ever had contact with one of those outfits, you know they operate in a completely different world.

Check out the comments if you are interested.

His or her comments belong to him. Anyone have any thoughts or comments on the comments?  All comments welcome.  Of course, subject to maintaining a professional demeanor with the determination of what is professional being made by me!

Written by Jim Ulvog

April 9, 2014, 17:08 pm at 5:08 pm

Posted in Audits

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Scott London asked for probation for insider trading

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Michael Rapoport reports yesterday in the Wall Street Journal on the sentencing filings: U.S. Attorney Asks Judge for Three Year Sentence for Former KPMG Partner.

I discussed this yesterday.

Almost bruised my jaw when it hit the keyboard after reading this sentence:

Harland Braun, Mr. London’s attorney, has requested a sentence of probation for his client, with no jail time.

Probation. Really? Yes.

That paragraph continues with quoting Mr. Braun from an interview on Tuesday.

How did I miss that when reading the government’s probation recommendation?

Read the rest of this entry »

Written by Jim Ulvog

April 9, 2014, 5:00 am at 5:00 am

Posted in Audits

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