Skip to main content

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

professional Accounting and Auditing said…
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.
August 22, 2014 at 4:41 AM
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
October 11, 2014 at 7:53 AM
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.
October 11, 2014 at 8:03 AM
bookkeeping tampa said…
A nice blogs that tells differentiates the black listed companies from the good ones. An important piece of information for investors.
October 28, 2014 at 6:08 AM
Unknown 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.
Auditors in Chennai
November 18, 2014 at 10:08 PM
Unknown said…
Thank you so very much buddies! I like your all best ever posts daily here. My hat is off to you on your special working. www.aqmauditing.com
May 13, 2015 at 9:35 PM
Unknown said…
Hello!! Great job this is so great blog. Thanks! AQM Auditing
May 24, 2015 at 10:05 PM
Unknown said…
This comment has been removed by the author.
May 24, 2015 at 10:05 PM
William Stinner said…
The moment you know and could control both, you are a good candidate to be boss. Please Visit:

Accountants in Barking
Payroll Services in London
July 2, 2015 at 1:04 AM
Natural gas tankless heater said…
It makes sense that auditors would be blocked from investing in companies that they would have a direct effect on at some point
July 22, 2015 at 1:53 AM
Aaaaccounting said…
Very useful article. This is full of information I can't wait to dig deep and start utilising the useful resource given by you.
payroll service in Barking
March 9, 2021 at 11:44 PM
Post a Comment

Popular posts from this blog

ADP/Payroll

Just realized that the very payroll/adp reports we all enjoyed looking at in order to see how much our client contacts made, now seem to piss me off. Especially when your main contact, who couldn't tell a debit from a credit, makes significantly more than you, and leaves at 5. It's almost guaranteed to get you in a foul mood and yak with your team about the ridiculous salaries that certain employees get when compared to yours.
36 comments
Read more

should you choose to audit financial services?

I'm trying to decide whether to audit financial services companies or non-financial services companies. What would you say are the pros and cons of either industries? Do individuals who choose non-FS have less career mobility within the firm or if they decide not to stay with the B4 after a few years? Really depends on what you'd like to do after (unless you really love auditing). If you want to a controller,etc. at a p/e firm or a hedge fund down the road, you'd want to go into financial services. The pay won't be too bad, especially if you get a share of the insane bonuses they dole out. If you want to audit industries with tangible products and want to get a better understanding of the operations of such businesses, then other industries are the way to go.In terms of mobility outside the firm, auditing other industries is the way to go since you have plenty of options when you exit the audit world. For example, in 2008, after Lehman collapsed, it was incredibly hard ...
47 comments
Read more

auditing vs consulting

I was wondering if you could break down the career opportunities in auditing and consulting (in a big 4). I know that consulting pays more in a big 4 and has more interesting work, but it seems that auditing has extremely good exit opportunities (Financial controller, CFO etc). Any thoughts on which is better in the long run? Well there's different consulting services offered by public accounting companies - the most popular being IT consulting and risk consulting. There are also other consulting services offered, but these two hire the most. Do they pay more? Yes, but not by much. Not enough for you to say: Shoot, the $$ is a huge reason for me to move over. Is the work more interesting than audit? Yes. You're actually looking over a company's processes and telling them what to do instead of what not to do (audit). Everyone I know who's made the switch likes it waay better than audit. In the long run though, choosing audit vs consulting really depends on what you want ...
66 comments
Read more