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SureBeam, which makes equipment for irradiating food to improve its safety, failed to file its second-quarter financial report with the S.E.C. after Deloitte raised questions about accounting that had been approved by the company's previous auditors, Arthur Andersen and KPMG.
Murray began his comments by noting that the previous auditors, Delottie, had informed the directors in June 2014 of their intention to resign.
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Omnicom fired previous auditor Arthur Andersen two months ago.
That action also accompanied its admission of a "lack of independence" from its previous auditor.
With regard to the forward purchase issue, this has been suggested before by the previous External Auditor to FAO, that in fact, the budget rate could be set at the forward purchase rate.
To force immediate disclosure would invite unwelcome questions about the previous performance of the auditor.
The firm has snapped up the local auditor and previous Andersen affiliate Carlos Bidermann, whose weighty portfolio of prime Brazilian companies includes the steel maker Gerdau.
Furthermore, it suggests that the Hawthorne effect occurs only in hallways that are within eyesight of the auditor, whereas previous studies were not able to localise the effect.
Previous cases focused on the auditors of the firm at the center of the scandal, not the auditors of investment managers one rung removed.
The auditors withdrew their previous certifications of the financial results.
Moreover, fee pressure may be perceived by auditors, based on previous experience, as an implicit suggestion to improve audit efficiency.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com