Civil complaint against Ernst & Young

A civil complaint was filed recently by Andrew Cuomo, the outgoing New York attorney general, accusing Ernst & Young of helping Lehman Brothers mislead investors. The state claims Lehman’s auditors aided in a fraud, using Repo 105 transactions to make the books...

TUI says adieus to KPMG

TUI Travel, has decided to say adieus to their auditors KPMG. The move comes soon after the company had to take a write-down of £117 million, forcing the company to restate their 2009 results. The company has decided to go ahead and replace the outgoing auditors with...

Demand Media IPO on hold

Way back in August of 2010, Demand Media, an online content creator filed for an IPO in the hope of raising $125 million. But as of end of December, it was still answering questions from government agencies about their accounting practice, specifically around how they...

Convergence Project still on track

Recently the Financial Accounting Standards Board and the International Accounting Standards Board said they were on track to finish writing the new accounting standards for financial instruments, revenue recognition, leases, comprehensive income, and fair value...

India on track for adoption of IFRS

Even thought the Indian version of the International Financial Reporting Standards (IFRS) has been altered here and there, the country is all set to implement the standards come April 2011. In the first phase, companies on the Indian stock exchanges – Nifty 50...

Bullock County Audit reveals material weaknesses

A recent audit done by the State Board of Examiners revealed that the Bullock County Commission, Alabama had a number of material weaknesses in their financial reporting. The audit covered the 2008-2009 fiscal years. The key issues uncovered were relating to the funds...

Ahold fraud

In February 2003, the Amsterdam based supermarket operator, Ahold announced that it had inflated earnings by atleast €391M ($500M) at its wholly owned US food service subsidiary. Apart from that the company also improperly consolidated revenues from joint ventures....