CoinDesk also has evidence, based on PwC’s own internal systems, that PwC had taken steps to limit its services for FTX US to only those allowed for auditors of public companies. Its Washington, D.C., office posted restrictions for any PwC office seeking business with FTX, limiting the firm’s activities with FTX US in the way that is required for an auditor to be independent under the Sarbanes-Oxley Act.
Thursday’s filing by FTX's new CEO, restructuring expert John J. Ray III, who was appointed after the FTX bankruptcy filing, confirms what reading the year-end 2021 financial statements should have screamed to any auditor or reader of the reports: There were no controls. Sarbanes-Oxley, which was passed after the Enron-era scandals, requires auditors to provide an opinion on the company’s internal controls over financial reporting and for management to provide an assessment of disclosure controls and internal controls over financial reporting.
However, in both cases, “no such opinion [on internal controls over financial reporting] is expressed.”The third red flag is, despite a combination of enormous siphoning off of firm assets by related parties and favorable tax planning, neither FTX Trading nor FTX US paid any federal income taxes, although they both appeared to be profitable. FTX Trading's GAAP net income was $386.5 million in 2021 and $16.7 million in 2020. FTX US reportedly lost $66.
Crypto_n_derivs retheauditors Didn’t “miss” anything
retheauditors And they were 'regulated' So why did not CFTC enforce capital controls ? (why were they not held accountable) ? They will now !!!!!!
retheauditors The playing video games in meetings is a typical giveaway!
retheauditors I thought Biden was going to end the dark days of wild Republican deregulation?
retheauditors Crypto is all about ignoring the warning signs
retheauditors
retheauditors But I thought the SEC audited them a few times and found nothing amiss. 🤡
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: WSJ - 🏆 98. / 63 Read more »
Source: Gizmodo - 🏆 556. / 51 Read more »
Source: NBCNews - 🏆 10. / 86 Read more »