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ARC Deloitte Sued for Failing to Track Accounting Irregularities in its Audit Essay

This week we will explore cases where CPAs or CPA firms have been sued, and then we will evaluate if and how the case could have been prevented.

By Wednesday, find an online article about a CPA or CPA firm that has been sued.  Please post a case that has not already been posted by a classmate (posting early will make this task a bit easier to accomplish).  Start your post with the name of the CPA or CPA firm and a link to the article.  Then, in your own words, describe the case.

By Sunday, reply to a classmate.  Cite the classmate’s name in the reply.  Evaluate the case and post your thoughts (in your own words) on how the CPA might have avoided being sued.  If the suit was unavoidable, explain why.

PricewaterhouseCoopers LLP

The company was sued in 2016 by Steve Rabin for age discrimination against job applicants age 40 and over. He filed the law suit on his behalf and on behalf of all other applicants who were denied employment for this reason for years 2013- 2020 in the states of Michigan and California. The law suit brought to light the fact that the company primarily recruited college students and failed to post entry level positions in a manner that would be accessible to individuals no longer in college. In 2020, the Court ruled an $11,625,000 settlement in favor on Steve Rabin and all other covered individuals on the plaintiff side; in addition, the Court required the company to implement new programs/policies to prevent the age discriminatory hiring process within the company. 

Ernst & Young (EY)

The second-largest shareholder in NMC Health filed the lawsuit in New York against Ernst & Young (EY) in July this year. Bavaguthu Raghuram Shetty accused EY of professional negligence which led more than $10 billon lost to investors. He claimed EY knowing concealed NMC Health’ fraudulent activities from 2013 to 201 9


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