PCAOB waarschuwt accountants voor frauderisico opkomende markten

De Amerikaanse toezichthouder op accountants PCAOB waarschuwt in een audit alert controlerend accountants voor het verhoogde risico op fraude bij bedrijven uit opkomende markten die een beursnotering hebben in de VS. De toezichthouder wijst onder andere op de recente fraudegevallen bij Chinese ondernemingen.

Alhoewel de audit alert in eerste instantie gericht is aan controlerend accountants, is het ook voor beleggers en auditcommissies een nuttige waarschuwing voor het verhoogde frauderisico bij ondernemingen uit bepaalde opkomende economieën waarvan de aandelen verhandeld worden op Amerikaanse beurzen, aldus PCAOB-voorzitter James R. Doty. 

"The PCAOB has observed from its oversight activities, and companies have reported in filings with the Securities and Exchange Commission, some conditions and situations in certain companies in emerging markets that indicate to auditors a heightened fraud risk. They include, for example, discrepancies between a company's financial records and audit evidence obtained from third parties; auditor difficulties in confirming cash and receivable balances; and the recognition of revenue from contracts or customers whose existence cannot be corroborated. Although the conditions, situations, and fraud risks described in this alert have been observed in audits of companies in certain emerging markets, they might also be present at companies in other markets. The matters discussed in this alert are relevant whenever such conditions, situations, or fraud risks are present in audits of companies located in emerging or developed markets."

In de Audit Alert wijst de PCAOB onder andere op de fraudezaken bij de Chinese ondernemingen China Intelligent Lightning and Electronics, China Century Dragon Media en Longtop Financial Technologies, waarbij de controlerend accountant zich terugtrok. In al deze zaken speelden problemen met bankverklaringen een rol.

Als rode vlaggen noemt de toezichthouder in zijn audit alert:

• Existence of two separate and different sets of financial books and records;
• Discrepancies between the company's financial books and records and audit evidence obtained with respect to the existence and accuracy of cash balances, accounts receivable, and revenues;
• Auditor difficulties in confirming cash balances, including when requesting to visit the offices of the company's bank, or questions about the authenticity of bank statements provided to the auditor;
• Auditors' follow-up visits to bank offices indicating serious discrepancies between bank confirmations provided to the auditor and the bank's actual records, such as previously undisclosed material borrowings and no record of or significant differences regarding certain transactions;
• Attempts by management to intercept or alter confirmation requests or responses;
• Irregularities in sales contracts, such as a company-specific seal affixed on the sales contract that does not belong to the purported customer named in the contract;
• Recognizing revenue from contracts or customers whose existence could not be corroborated;
• Recording sales of products shipped to warehouses or freight forwarders where no customer is identified;
• Undisclosed material facts surrounding acquisition transactions, sales transactions, and off-balance-sheet transactions with related parties;
• Recording of assets for which evidence of control, ownership, or title is either unclear or difficult to corroborate;
• Potential double counting of fixed assets;
• Recording of uncorroborated operating expenses for which the business purpose is unclear;
• Manipulation of the accounting records to mischaracterize or conceal payment of bribes or other improper payments;
• Significant unexplained discrepancies between amounts included in the financial statements in SEC filings and amounts included in financial reports to other regulators, such as local authorities;
• Use of personal-type bank accounts held in the name of corporate officers or employees instead of corporate-type bank accounts for company business; and
• Unusual delays by management in the production of routine documents requested by the auditor.

• Download Staff Audit Practice Alert no. 8 'Audit Risks in Certain Emerging Markets'

• Lees ook 'Justice Department probing Chinese accounting' (Reuters) The Justice Department is investigating accounting irregularities at Chinese companies listed on U.S. stock exchanges, said an official with the Securities and Exchange Commission, suggesting criminal charges may be brought in addition to civil proceedings.