Recent audit failures?

[c073186]

For my accounting class (Auditing), I have to find a recent article (January 1, 2007 - Present) related to an audit failure by a public accounting firm.

Has anyone heard of anything recently? I cannot seem to find anything.

[BoyBach]

Have you not been following Teh Credit Crunch?

[c073186]

Have you not been following Teh Credit Crunch?

Is that a failure by public accounting firms?

[BoyBach]

The various financial institutions need to have their accounts "signed off" by auditors every year.

Lehman Brothers was audited by the New York office of Ernst & Young. On Jan. 28, 2008, the firm gave a clean bill of health to Lehman for the year to Nov. 30, 2007. The auditor's report says, "Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances."

Ernst & Young gave Lehman a clean bill of health in a July 10 report to the SEC for the quarter ended May 31. Despite the growing financial crisis, auditors expressed no reservations about the value of the company's derivatives or any scenarios under which the company might be unable to meet its obligations. Two months later, Lehman collapsed.

http://www.financial-planning.com/asset/article/720761/viewpoint-were-auditors-companies-collapsed.html?pg=

[iShater]

I don't remember if these happened after 1/1/2007:

- Worldcomm
- Tyco
- Global Crossings

I think ... :o