BDO is screwed if they signed First Brands' audit in 2024.

Royally screwed....

likehelpfulfunny
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Every firm has failed audits. We don't know whether this was one, yet. The question becomes can an external party prove that the firm didn't do the proper audit procedures? If they did proper analysis but were misled, that is very different than not doing proper procedures. Also, if management was incompetent with respect to the assets that might have been pledged multiple times in error, that is very different than they deliberately tried to manipulate things. We only have speculation now. We need the forensics teams to uncover the facts.

likesmart

Tell me the difference between stupid and illegal and I'll have my wife's brother arrested.

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Grow up junior, they’ll be fine. They have insurance and will increase revenues on other clients to cover any potential losses here. And the beat goes on (insert Eminem voice)…

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lol

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BDO has been a sinking ship for the past few years ever since the senior partners gutted the equity out of the business and retired. Anyone of seniority who is still there and willing to hold the bag for this debacle either can’t rebuild a book of business elsewhere / have not built allegiance with their clients such that they’d go with them, or are utterly mediocre at best.

likehelpful

I’m sorry I hurt your feelings PwC 1. I’ve been doing this for 25 years at multiple firms. Been involved in over a dozen situations where a client (without active solicitation by former employee) wanted to continue work with the departed consultant. There is no basis for any claim against the former employee in that situation. Search the case law. In one case my firm at the time offered to do the work for free. In all other cases our ongoing work for the client was orders of magnitude larger than the bit of work the clients wanted to do with former employee. We are in business of serving clients and need to respect their choices. I think you are having trouble wrapping your head around a scenario where a client would proactively want to follow you. Fair enough.

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Did anything happen to KPMG when they signed off on the Silicon Valley Bank audit 2 weeks before they went under with no going concern doubt? Nope so nothing will happen to BDO

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Willful negligence and malpractice vs bad client and minor incompetence

The comments in here give me even more conviction. This industry is rotten at it's core. Fraud can only be hidden for so long and when it affects asset prices, the regulators will come knocking. Maybe not with the current administration, but the chickens will come home to roost eventually.

likefunny

hubris—comfort dressed up as insight

https://www.wsj.com/finance/how-jefferies-found-itself-at-the-center-of-first-brands-collapse-290f0a74

https://www.ft.com/content/83734e55-f3a6-46b6-865e-f16667d2fd3b

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It's always "reasonable" assurance my friend

funnylike

In fact AND “appearance”!!!

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Why?

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I never said they will go under. It's going to draw a lot of scurinty later on if firms were involved in attesting to private lending fraud—especially if it triggers a run on regional banks

likefunny

Huge story published by the WSJ last night about BDO. Is BDO going to sue Rupert Murdoch next?? No where left to hide. Years in the making. Just the tip of the iceberg.

The media blitz is heating up on BDO. Can’t sue the truth away! More to come as management continues to be exposed for their actions the past few years.

Out of anyone, BDO should know about off balance sheet chicanery. WHERE’S DING DONG DEMONG’S RESERVES?!

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Why are you posting the same thing about BDO everywhere? How did they hurt you?

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