Judge Determines that PricewaterhouseCoopers was Negligent in Colonial Bank Auditing Case – Constantine Cannon

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PwC violated auditing rules and didn’t take steps that could have detected a $2 billion fraud scheme that contributed to the 2009 failure of Alabama’s Colonial Bank, the judge ruled. So it is the auditors job to find fraud after all I’m also curious what steps the judge feels weren’t done that "could have" detected fraud.

PwC found negligent over Colonial Bank failure. She also cited testimony from a PwC partner in an earlier, related case that "our audit procedures were not designed to detect fraud". Rothstein did dismiss other charges against the firm brought by the FDIC and Colonial’s bankruptcy trustee.

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WIN FRAUD CLOSURES  USE Jerome Daly vs FIRST NATIONAL BANK MONTGOMERY NATIONALITY KEY A federal judge said PricewaterhouseCoopers must face the federal deposit insurance corp.’s $1 billion lawsuit that alleges the accounting firm failed to catch the massive fraud that brought down.

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Judge Determines that PricewaterhouseCoopers was Negligent in Colonial Bank Auditing Case – Constantine Cannon Senior U.S. district judge barbara rothstein rejected PwC’s argument that the FDIC’s recently added negligence claims based on audits of Montgomery, alabama-based colonial bank from 2002 to.