by Kurt Schulzke on August 29, 2008
The U.S. Department of Justice took another ethical black eye yesterday, this time from the 2nd Circuit Court of Appeals in Manhattan. The court held — in a widely watched KPMG tax fraud case — that DOJ attorneys illegally interfered with the defendants’ access to legal counsel, protected under the 6th Amendment to the United States Constitution.
At its launch in October 2005, the DOJ touted the case — against thirteen KPMG partners and employees — as “the largest criminal tax case ever filed.” Perhaps they should have christened it “The Titanic.” In the related press conference, U.S. Attorney Michael J. Garcia pompously proclaimed, with requisite moralistic gravitas: [click to continue...]
by Kurt Schulzke on August 26, 2008
U.S. accounting standards setting is truly out of control. Despite the constant drumbeat from special interests — mostly analysts and retirement plans who demand ever-increasing complexity and sophistication in accounting standards — what we get in the form of new accounting pronouncements in this country is largely indecipherable geek-speak. [click to continue...]
by Kurt Schulzke on August 26, 2008
When it comes to understanding the rationale of board or committee decisions and holding board members accountable, nothing beats a video or audio recording of the meeting. Meeting minutes, by contrast, are notorious for doing more to obfuscate and obscure than inform. [click to continue...]
by Kurt Schulzke on August 22, 2008
Today, a three-judge panel of the D.C. Circuit Court of Appeals handed down a much-anticipated 2-1 decision in Free Enterprise Fund v. PCAOB. The panel, in my view, reached the wrong conclusion, holding in essence that the PCAOB can rule over the world of U.S. accounting and auditing while immune from constitutional checks and balances. The crowning irony is that the PCAOB, supposedly designed to promote accountability, is itself so unaccountable for its actions.
Likely, the case will be reheard en banc and/or decided by the Supreme Court. Meanwhile, the best, most coherent reading is found in Judge Kavanaugh’s eloquent 57-page dissent: [click to continue...]
