Monday January 15, 2018
The Big Four Audit firms are continually engaged in audits around the globe. And invariably some of them blow up or the auditors are found guilty of gross or ordinary negligence. Recall that a year ago the two PwC Accountants at the Academy Awards. Ignoring warnings to not use social media backstage,they did so anyway. Apparently so wrapped up in texting and such, a presenter was given the wrong name for an award. Those two are out but PwC was able to retain the Academy as a client.
The FDIC is asking for over $2 Billion in damages.
Well when it rains it pours. The Satyam case is detailed in our textbook. Now Indian authorities have banned PwC from performing any audits in India for the next two years! PwC is scrambling to avoid this penalty.
Just google PwC booted out of India audits for two years to see more reporting on this.
We will be discussing such instances all semester.
What is your feeling about TBTF Too Big to Fail? Looks like the penalties are mounting. In the past firms would pay a fine (the cost of doing business?) without admitting guilt.No one lost their job or license in most instances. Is that the way things ought to be?
Professor Elam 
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