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 →

Examining the POGO Report and Other Matters It’s been twenty years since the Public Company Oversight Board (PCAOB) was created by the Sarbanes Oxley Act of 2002 (SOX). This is a good time to evaluate the mandate given to the board, it’s work during that period, and whether it is... Read more →

A Cautionary Tale for Silicon Valley Fake it until you make it is an expression that amply describes what happened to Theranos. It also characterizes the actions of the company’s founder and CEO, Elizabeth Holmes. The idea being that by imitating confidence, competence, and an optimistic mindset, Holmes was able... Read more →

What is the Public Interest? It’s been about 18 years since Congress created the Public Company Accounting Oversight Board in response to widespread fraud in the financial statements of the likes of Enron and WorldCom. Given the high rate of audit deficiencies identified in PCAOB inspections of public company audits,... Read more →