Fraud in Financial Statements Feed

ADM’s Accounting for Financial Statement Restatements Questionable Should it be a Treated as a “Big R” or a “little r”? Last week it was announced that Archer Daniels Midland (ADM) is under investigation by the U.S. Justice Department over its accounting practices. In January 2024, ADM placed its Chief Financial... Read more →


Are SPACs on the Way Out? New Regulations are on the Horizon

SEC Comes Down Hard on Marcum LLP On June 21, 2023, the PCAOB sanctioned Marcum LLP for violating PCAOB rules and quality control standards by failing to take sufficient steps to ensure that its system of quality control provided reasonable assurance that: (1) the firm would comply with the requirements... Read more →


Clawback of Executive Compensation: Ethical Issues

Accountability for Restated Financial Statements On October 26, 2022, the SEC issued a final rule aimed at ensuring that executive officers do not receive “excess compensation” if the financial results on which previous awards of compensation were based are subsequently restated because of material noncompliance with financial reporting requirements. Such... Read more →


Is Whistleblowing a Moral Act?

One’s Motive for Acting is the Key Is whistleblowing a moral practice? Different views exist on this important issue. Generally, the act of whistleblowing should be motivated by good intentions – i.e., to right a wrong. On the other hand, if the motive is to gain a financial reward or... Read more →


The Collapse of SVB and Signature Bank: Where Were the Regulators and KPMG?

Missing the Red Flags I have previously blogged about the collapse of SVB and the Signature Bank. In today's blog, I will update the information and probe more deeply the failings of regulators and KPMG to heed the warning signs that trouble lied ahead. The collapse of Silicon Valley Bank... Read more →


WHY GEN Z IS LEAST LIKELY TO REPORT WORKPLACE MISCONDUCT

THE IMPORTANCE OF WHISTLEBLOWING POLICIES In a recent study by Ethisphere it was stated that younger workers are more willing to report workplace misbehavior than workers from other generations, yet they are less likely to report it. The reason given is that they lack the confidence in their employer’s anti-retaliation... Read more →


When Should Clawback Provisions Be Used

Holding CEOs Accountable for Fraudulent Activities I have previously blogged about the 324:1 ratio of pay packages, on average, for S&P 500 CEOs when compared to the average worker Pay. In this blog I look at claw backs, a provision that enables a company and/or the SEC to go after... Read more →


Ethical Obligations and Decision Making in Accounting: Text & Cases, 6th edition

Book Review I want to share with my readers a review of my accounting ethics textbook that was just published in The CPA Journal. I am proud to say the review highly recommends the book. This is the sixth edition of my book that spans more than twenty years of... Read more →


Turmoil at the PCAOB: Has the PCAOB Lived Up to its Mandate?

Protecting the Public Interest I recently participated in the Ethics Symposium at the Annual Meeting of the American Accounting Association. A colleague of mine, Sri Ramamoorti from the University of Dayton, had very important comments about the Public Company Accounting Oversight Board (PCAOB),that regulates audits and auditors. In other words,... Read more →


Creating a "Speak Up Culture" in the Workplace

Reporting Wrongdoing Enhances Workplace Ethics I have previously blogged about the speak up culture, a phenomenon that broadly encourages employees to bring matters of concern to top management so that corrective action can be taken when warranted. What is a Speak Up Culture? Tanya Finnie addresses the issue in a... Read more →