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blackout list big 4

I would like to understand whether auditors can actually make investments of their own? especially index investing, would it compromise on their independence or ethical issue (if any)? 


We can; but every Firm has a blackout list - of pubic companies that you can't invest in. These are companies they either audit or are looking to pursue. As a big 4 auditor, you are essentially precluded from investing in about 25% of public companies in the US. There are still about 75% you can invest in, that's a pretty big %. This blackout list can be accessed using your respective intranets. As a partner, you get audited a lot, but if you are below that, you may not get audited but you can. I would play it safe, only invest in stocks you are allowed to, find out whether you can invest before you invest in it. It's not worth losing your license over it, even if you don't have any inside information.

Comments

LSKS Accounting and Auditing professionals work round the clock to ensure that your tax strategy can be viable and effective. Over the period of several years in the industry, our organization has developed the expertise and knowledge that is necessary for meeting taxation and compliance needs of a business.
lindelwa dzimba said…
As a student, blogs like this really help me get a feel of workplace environment and give me an insight. I did not know that as an auditor you are not allowed to just invest anywhere but that you have limited entities that you can invest in. This encourages me to carry on reading blogs as I get to learn new things and add onto my existing knowledge
Anonymous said…
Glad that the blog is helping you gain insight you don't to lose your licence over such little things, keep reading and learn more.
A nice blogs that tells differentiates the black listed companies from the good ones. An important piece of information for investors.
john son said…
Interesting blog. This is one of my favorite blog also I want you to update more post like this. Thanks for sharing this article.
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depra parker said…
Hello!! Great job this is so great blog. Thanks! AQM Auditing
depra parker said…
This comment has been removed by the author.
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It makes sense that auditors would be blocked from investing in companies that they would have a direct effect on at some point

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