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PCAOB Censures E&Y Manager E-mail
Written by The Progressive Accountant   
Tuesday, 14 December 2010 17:10

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PCAOB logoThe Public Company Accounting Oversight Board has censured CPA Jacqueline Higgins for backdating audit documents in March, allegedly at the direction of a senior manager and the engagement partner at Ernst & Young's Boston office. The actions were reportedly taken in preparation for a PCAOB inspection despite the fact all three had receive a communication from the firm not to change any records.

The other participants were not named in the action censuring Higgins, who joined E&Y in 2005. Among missing documents from one audit that were backdated were a Review Procedures Memorandum, an Average Forward Foreign Currency Contracts Calculation and three checklists in working papers. Higgins was also told to create a document that tied-out final financial statements that replaced one that tied-out pre-final statements.

The PCAOB review was conducted in April. E&Y removed Higgins from the audit team in July. The status of the senior manager and engagement partner was not discussed.


The Progressive Accountant
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Comments (2)
PCAOB censures E & Y manager
2 Wednesday, 15 December 2010 17:48
Karl Reinecker
So if there were allegations that the subordinate was being instructed by the senior manager and audit partner to make the changes why was the status of that allegation not discussed. Is there a continuing investigation? Is it being whitewashed? Does transparency disappear when it is inconvenient?
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E& Y censure
1 Wednesday, 15 December 2010 16:25
Dominque Propst
It seems patently unfair that the lowest person in the hierarchy was the one who was censured. All three should get it, with the parter paying a fine as well. That person knew what might happen, and proceeded to wreck his manager career anyway. Refusal could lead to firing, and no one can afford that right now. The mangaer had little choice but to comply.
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