Marriott Says E&Y Disclosed Possible Independence Problems

Marriott International Inc. has revealed that Ernst & Young informed the company about nonaudit work it performed for hotel employees in China that could raise independence issues.


Click Here

Marriott, in a quarterly filing with the Securities and Exchange Commission Monday, reported that Ernst said it had done tax calculation and preparation work for Marriott employees in Beijing from 2001 through May 2004. The auditor also said that affiliates made tax payments on behalf of Marriott, a practice barred by the SEC's rules on auditor independence, Dow Jones Newswires reported.

Marriott said Ernst & Young told its audit committee that the firm doesn't believe the holding and paying of the tax funds harmed Ernst's independence. The nonaudit tax work in China is similar to work Ernst did for other clients that decided the work did not impair independence.

Marriott also said it does not know of any other nonaudit services that may compromise Ernst's independence as its auditor.

Ernst & Young has notified the SEC and the Public Company Accounting Oversight Board about the potential independence problems.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.