Internal Audit & Controls

Imagine trusting a ship’s captain to navigate stormy waters, only to discover their compass is broken. That’s the unsettling reality investors faced when Baker Tilly US, LLP (“Baker Tilly”) repeatedly dropped the ball on audit quality. Today, the Public Company Accounting Oversight Board (PCAOB) announced a $500,000 fine against the firm for systemic failures in its quality control systems—a hefty penalty that underscores the weight of accountability in the world of financial reporting.

The Securities and Exchange Commission (SEC) has charged Louisiana-based utility company Entergy Corporation with internal accounting control failures that distorted its financial records. The company has agreed to pay a $12 million penalty to resolve the matter and adopt new measures to fix the cracks in its system.

The Public Company Accounting Oversight Board (PCAOB) has unveiled its inspection playbook for 2025, and it’s clear: the watchdog is doubling down on tackling risks and driving improvements where it counts most. The new staff report, released today, is packed with insights for auditors, audit committees, and anyone invested in safeguarding the financial system’s integrity.

In a costly lesson for the financial sector, the UK’s Financial Conduct Authority (FCA) has slapped Macquarie Bank Limited’s London Branch (MBL) with a £13 million fine. The penalty stems from serious control failures that allowed a junior trader to record over 400 fictitious trades in an audacious attempt to hide mounting losses.

The Public Company Accounting Oversight Board (PCAOB) has recently approved sweeping new requirements to standardize how audit firms report key metrics. These updates, coupled with a modernization of the PCAOB’s reporting framework, aim to enhance transparency, bolster investor confidence, and improve audit quality.

The Public Company Accounting Oversight Board (PCAOB) delivered a sharp reprimand to five international audit firms that repeatedly failed to meet basic reporting requirements. Bush & Associates, Barton CPA, Crowe Hussain Chaudhury, KPMG India, and RSM Brasil were not just fined—they were publicly called out for undermining the fundamental transparency that investors rely on.

The collapse of FTX in November 2022 was not merely the downfall of one of the world’s largest cryptocurrency exchanges but a seismic event that reverberated throughout the entire cryptocurrency industry. Once the third-largest crypto exchange, FTX handled billions of dollars in customer funds, making its rise and fall a significant case study in financial instability and regulatory oversight. The event exposed profound vulnerabilities within the cryptocurrency ecosystem, a sector once viewed as both promising and robust. The fallout from FTX’s demise extended far beyond its balance sheet, devastating other cryptocurrency services, shaking investor confidence, and prompting global regulatory scrutiny.