- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Adrianne Appel2023-10-18T17:00:00
Audit firms should carefully weigh the pros and cons of indemnity clauses in light of the Securities and Exchange Commission’s (SEC) recent complaint against Prager Metis.
Last month, the SEC charged Prager Metis with violating independence requirements of federal securities laws on 62 audits, 11 examinations, and 144 reviews, largely because the firm included indemnification provisions in 87 client engagement letters. The agency’s complaint, filed in U.S. District Court for the Southern District of Florida, is just the latest example of its enforcement focus on auditor independence.
The prudent path for auditors is not to use indemnity clauses in any way whatsoever, said Frank Borger Gilligan, a member of the corporate, mergers and acquisitions, and securities practice group at law firm Dickinson Wright.
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2023-10-03T14:21:00Z By Maria L. Murphy
The Public Company Accounting Oversight Board and Securities and Exchange Commission have emphasized in public statements auditor independence is a critical enforcement area, prompting the need for firms to reacquaint themselves with each agency’s requirements.
2023-09-29T21:45:00Z By Adrianne Appel
Accounting firm Prager Metis violated auditor independence rules through use of indemnification provisions in its engagement letters hundreds of times during a period of nearly three years, the Securities and Exchange Commission charged in a lawsuit.
2023-03-21T16:49:00Z By Kyle Brasseur
The Securities and Exchange Commission is paying added scrutiny toward audit firms’ increasing use of network affiliates in their work and the potential for inconsistent quality that comes with such an approach.
2025-02-28T15:45:00Z By Ruth Prickett
Compliance teams should expect more support from their organization’s internal audit functions. That is the clear message from the Institute of Internal Auditors, the global body of national affiliated internal audit institutes, which has just put into action its new Global Internal Audit Standards.
2024-09-16T19:45:00Z By Aaron Nicodemus
Chinese authorities banned PwC’s Chinese unit from performing audits in the country for six months, labeling the subsidiary’s flawed audit work as complicit in the failure of giant property developer Evergrande.
2024-06-12T01:46:00Z By Kyle Brasseur
Erica Williams was reappointed to a second term as chair of the Public Company Accounting Oversight Board after an ambitious first three years in the role that have seen the agency work to update many of its standards deemed outdated.
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