More on those fictional renovations in NB

Posted by & filed under Auditing, Ethics, Fraud.

Description: Last week this blog discussed how the assessment service inĀ  Province of New Brunswick invented renovations for over 2,000 residential properties in the province, causing big increases in tax assessments. The Premier has responded to the growing crisis by appointing a retired appeal court justice to examine the system. Anonymous insiders have claimed that… Read more »

Costing election promises

Posted by & filed under Auditing, Canadian Government, Cost Accounting.

Description: Critics and citizens alike have long decried the lofty election promises politicians make during election campaigns. But now the Liberal government of the tiny Canadian province of New Brunswick appears to be trying to change this dynamic by proposing a law requiring political parties to cost their election platforms. Violators would be punished by… Read more »

Quidi Vidi Brewery

Posted by & filed under Auditing, Corporate Strategy.

Description: The Quidi Vidi Brewery is a good news/bad news story. After years of struggling, including a 1999 warning from their accountant about imminent bankruptcy, this Newfoundland craft brewery has seen a turnaround in more recent years, thanks in part to its Iceberg brand in its distinctive blue bottle. But the two founding investors are… Read more »

Suspicion on Bombardier

Posted by & filed under Auditing, Ethics.

Description: It’s not the type of news any company wants. This past week Swedish authorities arrested one Bombardier employee and briefly detained two others over allegations of bribery. The suspicions are that somehow Bombardier employees colluded with Azerbaijani officials in an effort to secure contracts in Azerbaijan. Date: March 10, 2017 Source: montrealgazette.com Link: http://montrealgazette.com/business/bombardier-officials-arrested-in-sweden-report… Read more »

May I have the right envelope please?

Posted by & filed under Auditing.

Description: Accounting giant Price Waterhouse Coopers (PWC) took a big reputational hit at this past weekend’s Academy Awards. Millions saw it unfold on camera as somehow the PWC representatives delivered the wrong envelope for the best picture award. PWC has had a 83 year history of oversight of the awards process. It will be interesting… Read more »

Wondering about Deloitte and the Supreme Court

Posted by & filed under Auditing, Ethics.

Description: On February 13, 2017, this blog featured a piece called “Every 20 Years or So.” It dealt with auditing firm Deloitte’s appeal of court decision that it pay roughly $85 million in damagesĀ  related to their involvement in audit of the failed Livent enterprise. Well, if you read that blog post, you may know… Read more »

Every 20 years or so

Posted by & filed under Accounting Careers, Auditing.

Description: A lawyer friend of mine – who also happens to be a chartered accountant – has told me that roughly every 20 years or so, it seems that the Supreme Court of Canada deals with a case on auditor liability. Well, the 20 years must be up as on February 15, 2017, the Supreme… Read more »

Late warning

Posted by & filed under Auditing, Fraud.

Description: Perhaps it should not surprise us when government departments fail to implement a recommendation from the auditor general. But this one seems to defy imagination. In 2011, the federal auditor general informed the government that a consultant hired to manage First Nation finances had been part of an alleged fraud the previous year. Yet… Read more »

A most unusual theft

Posted by & filed under Auditing, Fraud.

Description: Internal control is important in preventing and detecting fraud and theft. The Royal Canadian Mint found out recently that metal detectors were not sufficient to prevent or detect an employee from stealing over $150,000 in gold by hiding it in a body cavity. Lawyer Gary Barnes noted that controls over the precious metals were… Read more »

Ice storm disaster

Posted by & filed under Auditing, Canadian Government.

Description: This past Tuesday night a major ice storm knocked over 100,000 NB Power customers off the grid, and by weekend thousands of New Brunswickers were still without electricity. With colder winter weather settling in, after a few days near the zero mark, citizens are facing both darkness and cold. A number of communities have… Read more »