Do Non Trust Deloitte - Whistleblower Edition...
I of late wrote a long missive of the alphabet to Deloitte almost a fellowship audited yesteryear Deloitte inward which I idea at that topographic point was a possibility that the accounts were fake.
I specifically told them that I was keeping the missive of the alphabet confidential in addition to that they should create the same. This was explicitly a speculative letter. Moreover if the speculations were correct in addition to then the fellowship inward inquiry was controlled yesteryear criminal elements. However at that topographic point was a reasonable peril that I was incorrect - in addition to thence full general publication - particularly on this weblog - was non reasonable.
Deloitte did non honor that asking for confidentiality. I received this missive of the alphabet from Sarah Simpson, Associate General Counsel, Office of the General Counsel:
I wrote to Ms Simpson in addition to asked whether blowing the embrace of anonymous whistleblowers was measure practice.
I was the someone who wrote the missive of the alphabet that caused Longtop Financial Technology to implode - a major failing for Deloitte. I have previously written partially defending Deloitte for that mistake. Maybe I was likewise generous.
If Deloitte has integrity I propose that they boot the bucket an external partner to review the audit of the fellowship inward question. [They know what fellowship it is...]
Normally I create non bother wasting my fourth dimension amongst class-action lawyers. Lousy ambulance chasers inward the securities arena - a wart on the uppercase markets. But non equally much a wart equally audit firms.
If in addition to when this fellowship blows (and it is yesteryear no agency assured) upwards I volition reckon it my "professional duty" to displace Deloitte equally much difficulty re this audit equally possible. My cloth (and it is extensive) volition hold upwards passed to degree activity lawyers in addition to I volition pose out show against Deloitte.
Indeed I await forwards to it. I also await forwards to the apology from Ms Simpson's managers vis her indiscretion.
John Hempton
Post script: at that topographic point are several people (including Professor Gillis) who hollo back the auditor did what was legally required of them. My sense is that the missive of the alphabet I received from Deloitte is odd - but if that is what is required of auditors I volition never write to the auditor using my ain advert in 1 trial to a greater extent than (though I volition role disclosed imitation ones).
I volition also - simply to add together insult to auditor injury - write a re-create to a friendly securities degree activity lawyer - who volition in addition to then own got a leg-up on whatever cases - in addition to who I suspect volition process the missive of the alphabet amongst the confidentiality it deserves - at to the lowest degree until confidentiality tin shipping away hold upwards broken.
Anyone desire to hold upwards the friendly securities degree activity lawyer?
I specifically told them that I was keeping the missive of the alphabet confidential in addition to that they should create the same. This was explicitly a speculative letter. Moreover if the speculations were correct in addition to then the fellowship inward inquiry was controlled yesteryear criminal elements. However at that topographic point was a reasonable peril that I was incorrect - in addition to thence full general publication - particularly on this weblog - was non reasonable.
Deloitte did non honor that asking for confidentiality. I received this missive of the alphabet from Sarah Simpson, Associate General Counsel, Office of the General Counsel:
Dear Mr Hempton
We own got received your missive of the alphabet inward which you lot questioned for sure accounting for inventory, cash in addition to gross margins at [company advert deleted]. Since the management of the Company is responsible for preparing the company's fiscal statements in addition to accurately recording transactions, nosotros believe the questions raised inward your missive of the alphabet should hold upwards addressed to management of the Company. Accordingly, nosotros own got forwarded a re-create of your e-mail to management in addition to the Audit Committee of the Company. Whilst nosotros appreciate receiving your enquiry almost the Company nosotros are precluded yesteryear professional person standards from discussing customer matters amongst anyone exterior the Company. Accordingly, nosotros volition testament non hold upwards able to response direct to the questions inward your email
Sincerely
Sarah Simpson
I wrote to Ms Simpson in addition to asked whether blowing the embrace of anonymous whistleblowers was measure practice.
I was the someone who wrote the missive of the alphabet that caused Longtop Financial Technology to implode - a major failing for Deloitte. I have previously written partially defending Deloitte for that mistake. Maybe I was likewise generous.
If Deloitte has integrity I propose that they boot the bucket an external partner to review the audit of the fellowship inward question. [They know what fellowship it is...]
Normally I create non bother wasting my fourth dimension amongst class-action lawyers. Lousy ambulance chasers inward the securities arena - a wart on the uppercase markets. But non equally much a wart equally audit firms.
If in addition to when this fellowship blows (and it is yesteryear no agency assured) upwards I volition reckon it my "professional duty" to displace Deloitte equally much difficulty re this audit equally possible. My cloth (and it is extensive) volition hold upwards passed to degree activity lawyers in addition to I volition pose out show against Deloitte.
Indeed I await forwards to it. I also await forwards to the apology from Ms Simpson's managers vis her indiscretion.
John Hempton
Post script: at that topographic point are several people (including Professor Gillis) who hollo back the auditor did what was legally required of them. My sense is that the missive of the alphabet I received from Deloitte is odd - but if that is what is required of auditors I volition never write to the auditor using my ain advert in 1 trial to a greater extent than (though I volition role disclosed imitation ones).
I volition also - simply to add together insult to auditor injury - write a re-create to a friendly securities degree activity lawyer - who volition in addition to then own got a leg-up on whatever cases - in addition to who I suspect volition process the missive of the alphabet amongst the confidentiality it deserves - at to the lowest degree until confidentiality tin shipping away hold upwards broken.
Anyone desire to hold upwards the friendly securities degree activity lawyer?
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