• Accounting Fraud isn't just a shocking Military Spending crisis, it is now endemic throughout the entire economy! Auditing fraud is rampant at the Big Four accounting firms (Deloitte, KPMG, Ernst & Young, and PricewaterhouseCoopers), which inspect the books of 99 percent of all large companies in America.... The consequences of this chaos could encourage systemic corporate fraud and a collapse of confidence in the stock market. Simply put, PCAOB is the board you didn’t know you needed to know about.

    BROUGHT INTO EXISTENCE by the Sarbanes-Oxley Act in 2002, PCAOB was created as a quasi-public, quasi-private agency, monitoring what at the time seemed like a broken auditing industry. All publicly traded companies must submit financial records for independent review, and in the Enron era, those audits failed to catch (and in a few cases abetted) massive accounting fraud. “PCAOB was supposed to address two things: the underlying fraud in the system, and that the market no longer trusted the books of these companies,” says Graham Steele, who worked on PCAOB legislation in the Senate Banking Committee and now directs the Corporations and Society Initiative at Stanford Graduate School of Business.

    The Big Four accounting firms also all consult for the same corporations, giving them incentives to keep companies happy while performing allegedly independent examinations. PCAOB was supposed to keep them honest through specialized scrutiny and enforcement. It’s self-funded through corporate fees.

    #Fraud #PeakCorruption #EconomicReform #StockMarket #PCAOB #SEC #Deloitte #KPMG #ErnstYoung #PricewaterhouseCoopers #News #RevolvingDoor #Lobbying
    Accounting Fraud isn't just a shocking Military Spending crisis, it is now endemic throughout the entire economy! Auditing fraud is rampant at the Big Four accounting firms (Deloitte, KPMG, Ernst & Young, and PricewaterhouseCoopers), which inspect the books of 99 percent of all large companies in America.... The consequences of this chaos could encourage systemic corporate fraud and a collapse of confidence in the stock market. Simply put, PCAOB is the board you didn’t know you needed to know about. BROUGHT INTO EXISTENCE by the Sarbanes-Oxley Act in 2002, PCAOB was created as a quasi-public, quasi-private agency, monitoring what at the time seemed like a broken auditing industry. All publicly traded companies must submit financial records for independent review, and in the Enron era, those audits failed to catch (and in a few cases abetted) massive accounting fraud. “PCAOB was supposed to address two things: the underlying fraud in the system, and that the market no longer trusted the books of these companies,” says Graham Steele, who worked on PCAOB legislation in the Senate Banking Committee and now directs the Corporations and Society Initiative at Stanford Graduate School of Business. The Big Four accounting firms also all consult for the same corporations, giving them incentives to keep companies happy while performing allegedly independent examinations. PCAOB was supposed to keep them honest through specialized scrutiny and enforcement. It’s self-funded through corporate fees. #Fraud #PeakCorruption #EconomicReform #StockMarket #PCAOB #SEC #Deloitte #KPMG #ErnstYoung #PricewaterhouseCoopers #News #RevolvingDoor #Lobbying
    When the Watchers’ Watchers Look the Other Way
    The board charged with overseeing the firms that audit corporations has become a cushy landing place for Republican politicos averse to enforcing its rules.
    PROSPECT.ORG
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