Sung to the tune of Neil Sedaka’s “Breaking Up is Hard to Do”…check out my interview with Jim Brashear on Holding Executive Sessions and Drafting Charters. Jim is Corporate Secretary of Sabre Holdings Corporation.
As Promised, SEC Going After Audit Firms
Last month at the AICPA conference, SEC Enforcement Director Stephen Cutler said that the SEC was preparing nearly a dozen cases against audit firms. Yesterday, the SEC started making good on that speech and charged two accounting firms of aiding and abetting a client’s fraud and ignoring their professional duties.
In an administrative order, the SEC claimed that Grant Thornton “rented’ out its name and prestige” to a small firm, Doeren Mayhew & Co. and that both firms failed to make a client – MCA Financial Corp. – disclose improper deals with related parties.