Italy’s Antitrust authority fined the big 4 (Ernst & Young, Deloitte, KPMG and PWC) a total of 23 million euros for allegedly conspiring and colluding to divvy up large public consultancy contracts. Looks like the Big 4 need to revise their Ethics class!
According to a recent study by global specialty insurer Hiscox, in 2016, workplace embezzlement cases cost companies an average of $1.13million. Some very interesting facts from the report–
55% of cases occurred at companies with fewer than 100 employees
37% of cases committed by someone in finance and accounting
30% of cases occurred in financial services or government sectors
37% of cases involved losses of > $500,000 and 23% of cases involved losses of > $1million
28.7% schemes lasted greater than 5 years
51% of perpetrators were women
Median age of perpetrators is 48
Definitely an interesting read.
The Financial Reporting Council fined Ernst & Young £1.8 million for their shoddy audit work of distributor Tech Data.
This is what happened. In 2013, Tech Data revealed that there were material errors in their financials for 2011, 2012 and part of 2013. The errors were related to improper accounting of vendor sales, improper use of manual journal entries and incorrect recognition of forex currency conversion. The company’s bottom line was reduced by $27 million due to these errors.
After Tech Data’s revelation, FRC got into action and in 2014 started to look into Tech Data’s auditor E&Y’s role in the matter. Both E&Y and the audit engagement partner Julian Gray admitted that they messed up and were fined £1.8m and £90K respectively.