Monday Dec 26 2022
As the author states, for once it is not KPMG
Along with the financial penalties, the FRC imposed several sanctions against both Deloitte and Mr. Manning, most of which involve a public reprimand not unlike the pillories of yore where naughty people would be set up in the town square so the citizenry could point and laugh. These sanctions include a published statement in the form of a severe reprimand, a declaration that the 2015 and 2016 audit reports signed on behalf of the firm did not satisfy the relevant requirements, and an order requiring the firm to take specified action to mitigate the effect or prevent the occurrence of the contravention (a.k.a. “knock it off and don’t do that again ok”). Mr. Manning got off easier than the firm, he racked up just the fine and a published reprimand.
Or as Wanda Sykes said about the Catholic Priest Scandal, what does it take to get kicked out of this racket? Any second semester audit student would know this, but somehow the lead auditor of the largest CPA firm in the world ignored it, and got a 27.5% discount on the penalty.
As you will see in my audit and ethics class, firms pay a fee, usually not admitting any guilt though they did this time (but then that got them a discounted fee, do you suppose Manning got a percent bonus of that for engineering the discount?
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