Thoughts on the Macy's scandal...how can one single employee hide this much expenses for multiple years in a row especially if vendors were still getting paid?!! Budget to actual control failure? Recon failure? Whatelse?

Thoughts??

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I wonder how auditors never caught it before…

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It's KPMG. It looks like amount that was "hidden" was around one quarter's revenue, so it should have been material. What I have not seen is whether this was over several years, so that it might have been below tolerable error each year, or what the offset was (another income statement account wouldn't make sense, so I assume a balance sheet one). The news never gives enough of a story to make a determination about how big this really is from an auditor perspective. That will come out over time.

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it was from 2021 to 2023. it was material audit wise. SEC jobs are set materiality cannot exceed 5% of net income.

Who’s Macy’s external?

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I believe KPMG (I don’t work there anymore hahaaa & I was GPS when I did)

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Maybe that employee knew exactly the threshold for the recons/analysis and was adding up expenses in small batches here and there, so the small variances were never looked in

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I keep saying it’s the shitty training and audits are understaffed or over worked.

“Invoices below materiality, NFWCN”

SALY

SALY

Accounting scandal

funny

Definitely a control issue and not a KPMG issue 😆

its both 🙄

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