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Please use current year and from the United States Part A Research for example

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Please use current year and from the United States
Part A
Research for examples
from the past two years of litigation, censures, and fines involving national
public accounting firms, such as fines by regulatory authorities and censures
by professional societies.
Make a recommendation as to how regulators and
professional societies may deter firms and organizations from making
similar violations.
Provide support for your rationale.
Part B
Be sure to respond to classmates’ posts. Responses should be substantive,
provide additional context, challenge classmates, add to the narrative, and
provide evidence to support ideas.
Classmate post
The Public Company Accounting Oversight board fined Deloitte
$500,000 for material accounting errors it missed in three consecutive audits.
This civil penalty against Deloitte and Touche LLP missed three consecutive
audits of Jack Henry & Associates. These errors had a significant impact as
this firm provided information processing solutions for banks and credit
unions. Deloitte was charged with violating Board rules and auditing standards
in its fiscal years 2012, 2013, and 2014 audits of Jack Henry. Deloitte was
primarily responsible for the violations because none of the engagement
personnel assigned to the audit had sufficient software industry experience and
knowledge to evaluate and audit the accounting for software license revenue
properly. It was liable as it did not assign the right employees to this work.
These employees did not have the right skills to achieve the stated objectives,
and they did not seek help when the situation required them. This error
resulted in deficiencies in the firm’s auditing this area. It affected Jack
Henry as there was a $ 780,000 civil money penalty for failing to properly
report revenue from its software license sales in the correct accounting
periods. Jack Henry’s failures were caused by inadequate internal control
surrounding revenue recognition.
Deloitte could have ensured it
did not make this violation by giving its employees the relevant tools. They
should also give their employees the confidence to ask for help when they
encounter a specific problem. Deloitte and Jack Henry should implement internal
controls that ensure that the revenue is reported in the correct accounting
period.

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