Page 1

Bell, California, Accounting Firm Audits `Rubberstamp,' Controller Says - Bloomberg Bloomberg.com

Businessweek.com

Bloomberg TV

Premium

Register

Sign In

MARKET SNAPSHOT U.S.

EUROPE

DJIA

ASIA

15,532.70 +156.59 1.02%

S&P 500

1,700.05

+12.06 0.71%

NASDAQ

3,737.63

+15.45 0.42%

Our Company

HOME

QUICK

BREAKING NEWS

NEWS

OPINION

Professional

MARKET DATA

Anywhere

PERSONAL FINANCE

Search News, Quotes and Opinion

TECH

POLITICS

SUSTAINABILITY

HEADLINES

Gunman at Navy Sea Command in Washington, One Shot

TV

MOST POPULAR

VIDEO

RADIO

RECOMMENDED

Based on your reading history you may be interested in:

Bell, California, Accounting Firm Audits `Rubberstamp,' Controller Says

Genesee County Offering Biggest Michigan Muni Deal Since Detroit Levine on Wall Street: Larry Summers, Bob Diamond, Caroline Gorman U.K. Regulator Investigating PwC Audit of Berkeley Group

By Christopher Palmeri - Dec 21, 2010 9:01 PM PT 0 COMMENTS

LUXURY

QUEUE

Audits of Bell, California, the city that paid its former manager almost $800,000 a year, were

Blackberry Lobbied Canada Investment Review Sector Head

a “rubberstamp” by its accounting firm, state Controller John Chiang said after an review.

The Sticky Situation That Delayed the Pebble Smartwatch

Mayer Hoffman McCann PC’s Irvine, California, office failed to follow “generally accepted

BT Loses Battle Over EU Order to Repay U.K. Pensions Aid

fieldwork audit standards,” said Chiang, whose office last month found the city unlawfully spent at least $710,000 in state and federal funds. Eight current and former officials were

Advertisement

arrested and charged with misappropriating public funds in September. City Manager Robert Rizzo and two other officials resigned July 22 after the Los Angeles Times reported that they were paid a collective $1.6 million annually. Bell is a town of 36,000 people south of Los Angeles in which one in four residents lives below the poverty line, according to the Census Bureau. Mayer Hoffman “appears to have been a rubberstamp rather than a responsible auditor committed to providing the public with the transparency and accountability that could have prevented the mismanagement of the city’s finances,” Chiang, a Democrat, said in a statement yesterday. “We were very offended by the tone of their press release,” Joe Cravelli, a spokesman for the accounting firm, said in a telephone interview. ‘Massive Scheme’

Most Popular On

Wharton Puts First-Year MBA Courses Online for Free

“Recent evidence disclosed by the controller’s office shows that Mayer Hoffman was

How Did Wal-Mart’s IPhone Discount Defeat Apple’s Price Controls?

subjected to a massive scheme of collusion that reached through every layer of city

Google’s Eric Schmidt Thinks College Is a Dinosaur

government, to undermine the audit process and deceive the auditors,” the firm said in a press release.

Krispy Kreme's Unlikely Comeback Paul Krugman Won the Crisis—and Lost the Argument

Chiang’s office said Mayer Hoffman failed to comply with 13 of 17 audit standards, including “assessing the risks of material misstatement,” according to a 153-page report. Mayer Hoffman, based in Leawood, Kansas, earned $44,000 for its 2008-09 review of Bell’s

Visit Businessweek.com

News You May Like

http://www.bloomberg.com/news/2010-12-22/bell-california-accounting-firm-audits-rubberstamp-controller-says.html[9/16/13 7:28:03 AM]

by Taboola


Bell, California, Accounting Firm Audits `Rubberstamp,' Controller Says - Bloomberg

finances, according to contracts the city released after a public records request.

Police Officer Gang-Raped Escorting Dead Sister in India

Rizzo provided the auditors with letters running for several pages that attested in part to the

One in Four Men Surveyed in Asian Study Say They Raped

city’s “responsibility for the design and implementation of programs and controls to prevent and detect fraud,” according to copies provided by the city.

IBM’s Deep Blue Stuns Chess King; ‘stop. reset.’: Correct

To contact the reporter on this story: Christopher Palmeri in Los Angeles at cpalmeri1@bloomberg.net

News From Around the Web

To contact the editor responsible for this story: Mark Tannenbaum at

Billionaires Dump Stocks, Prepare for Collapse (Shocking) (Newsmax)

mtannen@bloomberg.net.

by Taboola

More News: U.S.  · Municipal Bonds 0 COMMENTS

The #1 Exercise that Accelerates AGING (Stop Doing It!) (Old School New Body)

QUEUE

12 Jobs That Could Become Extinct (Salary.com) GET THE BLOOMBERG VIEW NEWSLETTER. Learn more

SIGN UP >

Sponsored Topics

Videos You May Like

by Taboola

Best Savings Account Rates Municipal Bonds Funds 10 Best Mutual Funds Retirement Communities

A Hands-On Impression of Apple's New iPhones

Ferrari's Newest Coupe: 62 Mph in Three Seconds

We're Being Set Up for the Next Crisis: Kotok

Mayer: Why Vogue Wanted Me Upside Down

From Around the Web

10 Best Etfs Retirement Calculator

by Taboola Advertisement

Buffett: This Will Cripple the Middle

Pastor Mocked for His ‘Biblical Money

8 College Degrees That Aren't Worth The

Travel Bloggers Guide to Hawaii

Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.

Like

2

Add New Comment

Logout

Advertisements

Showing 0 comments on Bell, California, Accounting Firm Audits `Rubberstamp,' Controller Says

Sponsored Link

American Express Bank, FSB. Member FDIC.

http://www.bloomberg.com/news/2010-12-22/bell-california-accounting-firm-audits-rubberstamp-controller-says.html[9/16/13 7:28:03 AM]


Bell, California, Accounting Firm Audits `Rubberstamp,' Controller Says - Bloomberg

BLOOMBERG.COM News ABOUT Our Company

Opinion

Careers

Markets

Advertising

Personal Finance Licensing

SUPPORT AND CONTACT Customer Support Contacts STAY CONNECTED

Twitter

Facebook

Press Room

Feedback Linked In

RELATED BLOOMBERG SITES

Tech

Help

Sustainability Trademarks

Luxury

TV

Video

Terms of Service

Radio

Archives

Privacy Policy

Professional

Sitemap

google+

BLOOMBERG TERMINAL

Subscriber Login FAQ

StumbleUpon

MOBILE APPS

BLOOMBERG PREMIUM SERVICES

Bloomberg Businessweek

Bloomberg Markets Magazine

Bloomberg Briefs

Bloomberg New Energy Finance

Bloomberg

Bloomberg Institute

Open Bloomberg

Bloomberg Government

Bloomberg Sports

Bloomberg Radio+

ブ ルームバーグ(日本語)

Bloomberg Link

Bloomberg Law

会社概要(日本語)

Bloomberg Blog

Bloomberg BNA

Bloomberg TV+ Bloomberg Businessweek+

Bloomberg Books Bloomberg Markets+ Bloomberg Anywhere

©2013 BLOOMBERG L.P. ALL RIGHTS RESERVED.

Jobs by Indeed

http://www.bloomberg.com/news/2010-12-22/bell-california-accounting-firm-audits-rubberstamp-controller-says.html[9/16/13 7:28:03 AM]

Rate this Page

Made in NYC Ad Choices

Bell accounting firm audits bloomberg