Forensic Risk Alliance’s Post

STILL TIME TO REGISTER: The Public Company Accounting Oversight Board (PCAOB) has invited Laura Posner, a partner in our Securities Litigation & Investor Protection practice, to join a virtual roundtable to discuss the proposed amendments to the PCAOB’s Auditing Standards related to a Company’s Noncompliance with Laws and Regulations (“NOCLAR”).  #NOCLAR would require auditors to identify laws and regulations with which non-compliance “could reasonably have a material effect” on the financial statements. The roundtable will take place on March 5, and begins at 9:30 a.m. ET. Laura’s panel discussing the economic impact of NOCLAR will take place from 3-5 p.m. ET. #investorprotection #accountingfraud #auditor #securities #PCAOB https://lnkd.in/eS2fhEGN

I bet you thought #auditors already were identifying laws and regulations with which non-compliance “could reasonably have a material effect” on the financial statements during their audits. Come join me to discuss the costs, and more importantly, the benefits of the Public Company Accounting Oversight Board (PCAOB)’s proposed rule change. #accountingfraud #securitiesfraud

The forensic accounting investigation detailed in this article could itself serve as Exhibit A in the lectures we regularly give on financial statement fraud. As detailed in the article, this is why the PCAOB and SEC demanded access to China-based public company audits.

Seeking an external auditor’s expertise isn’t just for corporate giants—it’s a smart move for family-owned enterprises too. Here's 6 reasons why you should consider investing in an external audit.

The key distinctions between forensic accounting and auditing will be examined, focusing on the scope of work, purpose of examination, and methodology employed in each discipline. Additionally, the common objectives and professional standards shared by these fields will be emphasized.</p><p>The appropriate circumstances for utilizing forensic accounting versus auditing in various scenarios and cases will be …... https://lnkd.in/eVB7S2B9

Audit firms are private businesses with the same legitimate interest in making a profit that all private businesses have. But audit firms have also been entrusted to be essential gatekeepers in maintaining the integrity of our capital markets. The leaders of audit firms, and the tone that they set, play a central role in ensuring that professionals within audit firms do not sacrifice integrity and professionalism for profit and growth. Read more below-

The U.S. Congress passed the Holding Foreign Companies Accountable Act (HFCAA) to increase confidence in the audits of Chinese Companies. The law passed last summer provides the PCAOB with complete access to inspect and investigate registered public accounting firms in China for the first time in history. In the fall, nearly USD 8 million in penalties were assessed for violations of quality control standards that occurred through improper answer sharing during mandatory training tests and for compromising auditor-client independence on audit work. The PCAOB's focus and work continue, as noted in the attached article and the enforcement actions taken. Link to PCAOB news release: https://lnkd.in/eTCkva85. #Ethics #PCAOB #HFCAA

🚨 Public Company Accounting Oversight Board (PCAOB) Drops the Hammer: 5 Audit Firms Fined $165,000! 🚨 Wondering what went down? The PCAOB just wrapped up an enforcement sweep that caught multiple firms in compliance violations. From missing communications with audit committees to failing to report to the PCAOB—this is a wake-up call for every audit professional. Dive into our latest blog to uncover the lessons and see how you can stay ahead of these compliance pitfalls! Read more | https://bit.ly/3Y3BDVp #pcaob #audit #compliance #accountingprofessionals #financeinsights #trending #news #mycpe

The #PCAOB’s proposed auditing standard, A Company’s Noncompliance with Laws and Regulations or #NOCLAR, is wide-ranging and, if adopted, could drastically change the current audit model and significantly expand auditor obligations. These proposed standards raise significant concerns for public companies, their boards of directors, audit committees, #compliance, and legal departments; as well as for non-US companies seeking access to US equity and financial markets. Please join partners from DLA Piper’s Compliance team, Brian Benjet, Katrina Hochstetler Hausfeld, Lisa LeCointe-Cephas, and Patrick Bryan, for our upcoming webinar as they discuss considerations for companies and the potential increase of burden on compliance, legal, and audit functions. http://spr.ly/60445G3n2

🔍 After a recent report highlighted significant deficiency rates among the big four accounting firms, the Public Company Accounting Oversight Board (PCAOB) has fined KPMG for a testing cheating scandal. This raises serious concerns about the effectiveness of these firms in their critical roles of auditing and ensuring transparency in financial reporting for other corporations. It is ironic when such a company has a serious corporate governance issue. The below #WSJ article by Mark Maurer is a good read if interested.