Possible criminal charges this summer against individuals in LIBOR rate fixing scandal

Leave a Comment / Accounting /

The Wall Street Journal reports in Criminal Cases Loom in Rate Rigging that criminal charges may be brought against individuals who worked at Barclay. Charges could be filed this summer (2013) but the investigation is going slow so the timeline could slip.

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Possible criminal charges this summer against individuals in LIBOR rate fixing scandalRead More »

Possible criminal charges this summer against individuals in LIBOR rate fixing scandal Read More »

Why isn’t everyone blogging?

1 Comment / Pondering /

That’s the question raised by Seth Godin in his 5000th post.

All knowledge workers have something worth sharing.

Mr. Godin’s biggest surprise after 11 years of blogging?

That more people aren’t doing this. Not just every college professor (particularly those in the humanities and business), but everyone hoping to shape opinions or spread ideas. Entrepreneurs. Senior VPs. People who work in non-profits. Frustrated poets and unknown musicians… Don’t do it because it’s your job, do it because you can.

Audit CPAs – …

Why isn’t everyone blogging?Read More »

Why isn’t everyone blogging? Read More »

2 creative questions for risk assessment in an audit

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Good questions help understand what your client considers to be their biggest risks.

Charles Hall provides two great questions to ask in his post Missing Critical Clues in the Audit Process:

Think about these as ways to get your client talking about the risks in their organization: …

2 creative questions for risk assessment in an auditRead More »

2 creative questions for risk assessment in an audit Read More »

Internal control, 5th century version

2 Comments / Accounting /

Here is an illustration of internal control, a specific mention of “checks and balance”, and the goal of internal control from the 5th century:

From the Fourth Ecumenical Council in 449 A.D.: “As we have learned, in some churches, the bishops administer the material goods of the church without a treasurer; it has seemed right and proper that every church with a bishop should also have a treasurer taken from the clergy who will administer the church’s goods with advice of his own bishop. In this way the administration of the church will not be without checks and balances, the goods of the church will not be dissipated, and the priesthood will be free from all suspicion.”

The quote was listed at LinkedIn by a former colleague, Jennifer Perez, CPA.

That’s too good of an explanation of internal control to let pass without quoting it and making some comments. 

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Internal control, 5th century versionRead More »

Internal control, 5th century version Read More »

Guest posts and discussion on valuing GIK

Leave a Comment / Accounting /

If you are an auditor working in the NPO community, especially if your clients receive large volumes of donated goods, you might want to check out some posts at my other blog, Nonprofit Update.

There is a different perspective and lively discussion at the following post (well, at least it’s lively based on what’s going on at my blogs):

Two other guest posts open up the conversation to more voices:

Guest posts and discussion on valuing GIK Read More »

Former KPMG partner enters plea agreement

Leave a Comment / Audits /

Former KPMG regional audit PIC Scott London entered a plea agreement on Tuesday according to multiple media sources.

The agreement says he passed information to his golf buddy at least 14 times.

The Encino Patch article linked below says he will plead guilty to one felony charge of securities fraud through insider trading with potential prison term of 20 years. Multiple other reports list that as the potential penalty. The Week adds that the potential fine is up to $5M.

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Former KPMG partner enters plea agreementRead More »

Former KPMG partner enters plea agreement Read More »

Bryan Shaw pleads guilty for conspiracy in KPMG insider trading fiasco because he’s guilty. Oh, and a really small additional consequence for Mr. London – #8

Leave a Comment / Audits /

The tippee in the KPMG insider trading case, Bryan Shaw, entered a guilty plea Monday on one count.

Check out the identical headlines (no, they aren’t from the same reporter or picked up on from a wire service):

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Bryan Shaw pleads guilty for conspiracy in KPMG insider trading fiasco because he’s guilty. Oh, and a really small additional consequence for Mr. London – #8Read More »

Bryan Shaw pleads guilty for conspiracy in KPMG insider trading fiasco because he’s guilty. Oh, and a really small additional consequence for Mr. London – #8 Read More »

E-book to help CPAs cope with massive change available today free

Leave a Comment / Other stuff, Pondering /

Just got my copy of Look, Lead, Love, Learn: Four Steps to Better Business, a Better Life – and Conquering Complexity in the Process written by Bill Sheridan of the Maryland Association of CPAs.

Mentioned this book last night at this post.

Today only the price is $0.00. A bargain at $5. Even better at today’s price.

I’ve read the first 20 screens or so. Great stuff.

Starts with a pertinent quote –

You better start swimmin’

Or you’ll sink like a stone.

– Bob Dylan

If you want a short read to help you cope with the massive change going on around us, check out the book. Grab it today so you can read it this weekend.

E-book to help CPAs cope with massive change available today free Read More »

Update on court appearances for players in KPMG insider trading fiasco

Leave a Comment / Audits /

The Agoura Hills Patch reports Businesssman Out on Bail in KPMG Insider Trading Case Involving Agoura Hills Man.

I’ve been watching for news on these court appearances and no one else seems to have given any coverage.

The article says Bryan Shaw was in court last Friday, 5-10. He is out on $50,000 bail with his next court appearance on Monday 5-20. He is expected to enter a guilty plea.

Scott London will appear in court on Thursday, May 30. Initially he was going to appear Friday, May 17.

Update on court appearances for players in KPMG insider trading fiasco Read More »

Great book to help CPAs cope with all that change available for great price (hint – $0 on Friday)

1 Comment / Other stuff, Pondering /

I’ve mentioned the blog of the Maryland Association of CPAs quite a few times.  Bill Sheridan has an e-book available at Amazon – Look, Lead, Love, Learn: Four Steps to Better Business, a Better Life – and Conquering Complexity in the Process.

Only five bucks and a far better price tomorrow, 5-17-13.

If you aren’t subscribing to their blog, you really should.

Here’s a quick description of the book: …

Great book to help CPAs cope with all that change available for great price (hint – $0 on Friday)Read More »

Great book to help CPAs cope with all that change available for great price (hint – $0 on Friday) Read More »

First guilty plea in KPMG insider trading fiasco – 5-7-13 update

Leave a Comment / Audits /

On Monday, the Department of Justice indicted Mr. Bryan Shaw, the golfing buddy of former KPMG partner Scott London on one felony count of conspiracy. Mr. Shaw reportedly entered a plea agreement saying he would plead guilty and agree to disgorge about $1.27M of profits.

The press release from the Department of Justice is here.

A few other news reports:

I’ve looked briefly a couple of times and can’t find the indictment and plea agreement on-line.

Here are a few comments in the DoJ press release I found interesting.

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First guilty plea in KPMG insider trading fiasco – 5-7-13 updateRead More »

First guilty plea in KPMG insider trading fiasco – 5-7-13 update Read More »

New models of analyzing fraud – triangle, diamond, double diamond, and MICE

Leave a Comment / Audits, Fraud /

For a good stretch on how to analyze fraud, check out a great article “Beyond the Fraud Triangle,” in The CPA Journal, written by Jack Dorminey, Scott Fleming, Mary-Jo Kranacher, and Richard Riley. This article was mentioned by a commenter in an earlier post.

I heartily recommend the article for all auditors.  It goes beyond the standard fraud triangle and provides an overview of several other models, including:

  • a four-sided diamond model, which adds capability in addition to opportunity
  • a dual diamond which allows for separate analysis of accidental and predator fraudsters
  • MICE – money, ideology, corruption, and ego/entitlement – as a model of motivation for high-level, skilled fraudsters that don’t seem motivated by small-scale payoffs

If you want to stretch your knowledge of the concepts, check out those models. Hint for auditors: stretching your brain on fraud is a very good thing to do.

My thoughts:

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New models of analyzing fraud – triangle, diamond, double diamond, and MICERead More »

New models of analyzing fraud – triangle, diamond, double diamond, and MICE Read More »

KPMG insider trading fiasco update – how much responsibility does a firm have for ethical failures? – 5-3-13

2 Comments / Audits, Pondering /

I’ve not seen much news lately on the alleged insider trading by former KPMG partner Scott London. Two articles of interest.

These two articles have different perspectives on how much responsiblity belongs to the firm.  We need a long wrestle match with that question.

A pattern?

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KPMG insider trading fiasco update – how much responsibility does a firm have for ethical failures? – 5-3-13Read More »

KPMG insider trading fiasco update – how much responsibility does a firm have for ethical failures? – 5-3-13 Read More »