1. Remember the “Good Old Days” Filled with Accounting Fraud? They May Be Back

    Are we heading toward a new wave of accounting and financial statement fraud and misconduct? From Stephen Juris of law firm Morvillo Abramowitz:

    “Several months ago, I raised the question of why the large-scale accounting fraud cases of the type that had been so prevalent in the early 2000s were no longer a staple for either federal prosecutors or the SEC…

    As luck would have it, shortly thereafter, Hewlett-Packard loudly accused UK software firm Autonomy of engaging in a willful effort to mislead HP and investors in connection with HP’s 2011 acquisition of that firm, triggering several investigations and extensive media coverage of the same types of revenue recognition issues that had been central to many earlier accounting fraud investigations. Moreover, in the wake of President Obama’s nomination of Mary Jo White as SEC chairman, the question of regulatory enforcement priorities has received significant scrutiny. Included among the questions raised by commentators and the news media is whether the SEC will be focusing more attention on financial statement fraud. In mid-March, for example, the Wall Street Journal reported that one likely area of increased focus under the SEC’s new leadership will be accounting fraud, in part because claims of financial statement misconduct were the biggest single category of tips under the SEC’s whistleblower scheme for the year prior to October 2012. The SEC also recently announced the launch of a highly specialized computerized tool designed to analyze public companies’ reporting data and flag potentially anomalous accounting items.”

    Read the full update, Restatements Resurrected?: Accounting Fraud By The Numbers - Morvillo Abramowitz Grand Iason & Anello P.C.»