• 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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  • A federal watchdog you’ve probably never heard of is supposed to be protecting your financial security. But in key respects it’s been doing a feeble job.

    It’s supposed to be policing some of the biggest and most powerful firms in American business.

    It’s supposed to reduce the risk that, as a result of fraud, error, or corporate incompetence, your financial future goes poof.

    Indirectly, it’s supposed to help safeguard any savings you’ve stashed in the stock market, any stake you have in a pension or retirement fund, and maybe even your paycheck and employment benefits.

    It’s supposed to help avert man-made disasters like the financial crisis and mortgage-meltdown of a decade ago; the accounting scandals that destroyed a long list of corporations such as Enron and WorldCom almost two decades ago; and the savings and loan crisis that consumed mountains of taxpayer money in the 1980s and ‘90s—the kind of catastrophes that can cripple your community, crater the economy, or collapse the financial system.

    #StockMarket #Pensions #BananaRepublic #DeloitteTouche #ErnstYoung #KPMG #PricewaterhouseCoopers
    A federal watchdog you’ve probably never heard of is supposed to be protecting your financial security. But in key respects it’s been doing a feeble job. It’s supposed to be policing some of the biggest and most powerful firms in American business. It’s supposed to reduce the risk that, as a result of fraud, error, or corporate incompetence, your financial future goes poof. Indirectly, it’s supposed to help safeguard any savings you’ve stashed in the stock market, any stake you have in a pension or retirement fund, and maybe even your paycheck and employment benefits. It’s supposed to help avert man-made disasters like the financial crisis and mortgage-meltdown of a decade ago; the accounting scandals that destroyed a long list of corporations such as Enron and WorldCom almost two decades ago; and the savings and loan crisis that consumed mountains of taxpayer money in the 1980s and ‘90s—the kind of catastrophes that can cripple your community, crater the economy, or collapse the financial system. #StockMarket #Pensions #BananaRepublic #DeloitteTouche #ErnstYoung #KPMG #PricewaterhouseCoopers
    How an Agency You've Never Heard of Is Leaving the Economy at Risk
    The Public Company Accounting Oversight Board, which was created in the aftermath of the Enron and WorldCom scandals to police audit firms and to protect everyone who has a stake in the stock market, has proven a feckless enforcer of its own rules.
    WWW.POGO.ORG
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