Independence Standards at Risk Perhaps you are aware that private equity firms have started to acquire a controlling interest in accounting firms, which these days are better referred to as “professional services” firms. The first such acquisition was in August 2022, when Tower Capital Partners purchased the stock of Eisner... Read more →

OVERVIEW OF THE PANEL DISCUSSIONS: I am moderating a panel at the 2023 Ethics Symposium presented by the Public Interest Section of the American Accounting Association (AAA). The panelists are well-known observers of financial statement fraud and critics of audit failures. They will look back and forward to assess where... Read more →

Protections and Retaliation What makes one person speak out and blow the whistle on wrongdoing while another remains silent? Is it a “moral sense,” as Thomas Jefferson wrote, that instinctively motivates a person’s thoughts and actions? Is it motivated by avoiding harm to others? Is the act of blowing the... Read more →

The Role of ChatGPT The following blog was posted by Michael K. Shaub, May 4th, 2023. Dr. Shaub is a Clinical Professor and Deloitte Professional Program Director at the Texas A&M Mays Business School. I appreciate Mike's permission to publish this blog on my website. ChatGPT in the Educational Space... Read more →

Where Were the Regulators? The collapse of Silicon Valley Bank (SVB) and Signature Bank, and a smaller firm, Silvergate Capital Corp., reminds me of the stream of bank failures since the 1970s that have created concerns about the ability of bank officials and regulators to oversee the liquidity and risk-taking... Read more →

Costs and Benefits of Adding 30-units to Accounting Students' Requirements for Licensure as a CPA One of the most talked about issues in accounting right now is whether the 150-hour requirement to qualify for licensing as a CPA creates a barrier to entry for many accounting students that should be... Read more →

Cheating on Internal Training and Ethics Exams Is a Wake-Up Call for the Accounting Profession By Michael K. Shaub, June 29th, 2022 The following is a a very thoughtful blog published by my friend and colleague, Mike Shaub. Mike addresses the recent scandals where three of the four Big Four... Read more →

Audit Firm Professionals Have Cheated on Ethics and Internal Training Exams How can it be that three of the big four CPA firms were caught cheating on external and internal ethics and continuing professional education (CPE) courses given that their role as auditors is to protect the public interest and... Read more →

Objectivity and Impartiality Replaces the Strict Application of Independence Rules In June 2021, the Securities and Exchange Commission (SEC) made amendments effective for certain rules regarding auditor independence requirements (known as Rule 2-01 of Regulation S-X). The intention behind these amendments is to modernize the SEC’s rules governing auditor independence... Read more →

Professional Obligations of Accountants to Clients You may have heard that Donald Trump and the Trump Organization’s accountant, Mazars USA, split up after Mazars sent a letter dated February 9, 2022 to the Trump Organization. The letter was included in a court filing and said that “the Statements of Financial... Read more →