Exact(3)
The Magnitsky Acts are the brainchild of William Browder, a former international investor in Russia, whose auditor, Sergei Magnitsky, was tortured to death in a Moscow jail.
(This rule was introduced after the collapse of Enron, whose auditor, Arthur Andersen, was thought to have gone easy on the crooked energy firm to protect its lucrative business advising it).
But the soon-to-be-independent firms face a very poor market, analysts say, in part because accountants' consulting units have been indirectly tainted by the collapse of Enron, whose auditor, Arthur Andersen, also sold the company consulting services.
Similar(57)
Companies with more lenient auditors have to pay more to borrow money, and public companies with such auditors trade at lower valuations than do companies whose auditors have earned better reputations.
[A1.] Ernst & Young Loses Court Ruling Ernst & Young, the accounting firm whose auditors the government contends failed to uncover a fraud at Cendant, lost an early court battle.
C10 Dot-Com Changes Accountants Excite@Home said it had switched to PricewaterhouseCoopers from Ernst & Young, whose auditors called Excite's finances into question the day before.
Earlier this year CoActive dropped KPMG, whose auditors it said had insisted on the new accounting methods, and switched to BDO Seidman, a much smaller firm.
Using data from 35 countries from 2002-2014, he finds that companies whose auditors are inspected by the PCAOB raise significantly more debt and equity capital following the disclosure of their auditors' PCAOB inspection report.
Xerox, whose auditors had refused to sign off on its annual report until they had rechecked the numbers, said that the auditors, KPMG, found some accounting discrepancies but uncovered no signs of fraud.
The Xerox Corporation, whose auditors had refused to sign off on its annual report until they had rechecked the numbers, said yesterday that the auditors, KPMG, found some accounting discrepancies but uncovered no signs of fraud.
On Sept. 24, in a sign of the problem's urgency, the inspector general, whose auditors had inspected only a few laboratories so far, issued a "management alert" recommending that the agency strengthen controls over its inventories.
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