#audit

Deloitte recently conducted layoffs within its audit division. These reductions affected employees, including senior managers. The layoffs occurred shortly before annual bonuses were scheduled. Affected individuals reported the process felt impersonal. One senior manager received severance and bonus payout.

https://www.goingconcern.com/layoff-watch-26-deloitte-auditors-got-bad-news-this-week/

US House of Representatives
SELECT COMMITTEE ON THE CHINESE COMMUNIST PARTY
548 Cannon House Office Building Washington, D.C. 20515
(202) 225-6002

May 2, 2023

Mr. John Donahoe
President, and Chief Executive Officer Nike, Inc.
One Bowerman Drive Beaverton, OR 97005

Dear Mr. Donahoe,

On March 23, 2023, the House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party (CCP) held a hearing entitled, "The Chinese Communist Party's Ongoing Uyghur Genocide." At the hearing, we heard first-hand witness accounts about the CCP's concentration camps and expert testimony regarding the perpetration of genocide. We also received written testimony in which an expert assessed that "American companies are financing the state-sponsored forced labor programs in the Uyghur Region."1 We seek additional information regarding this matter.

The U.S. Department of State has determined that the CCP is committing genocide against Uyghurs and other minority groups in Xinjiang. 2 In response to the CCP's atrocities, Congress passed the Uyghur Forced Labor Prevention Act (UFLPA) with bipartisan support. On December 23, 2021, the UFLPA was signed into law. The UFLPA prohibits the "importation of any goods made with forced labor, including those goods mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region."

1. We received expert testimony which revealed that products made by Uyghurs in forced labor camps are still entering the United States. 4 One expert told the Select Committee that Nike is "sourcing garments made not only from cotton from the Uyghur Region but also viscose, lyocell, polyester, leather, and linen from the region."5 Continuing to import goods produced in part with

1 The Chinese Communist Party's Ongoing Uyghur Genocide: Hearing before the Select Comm. on Strategic Competition between the U.S. and CCP, 118 Cong. (Mar. 23, 2023) (Written Testimony ofNury Turkel) ("CCP's Uyghur Genocide Hearing").
2 Edward Wong & Chris Buckley, U.S. Says China's Repression of Uighurs Is 'Genocide', N.Y. TIMES (July 27,
2021).
3 Uyghur Forced Labor Prevention Act, H.R. 6256, I 16th Cong. (2021).
4 CCP's Uyghur Genocide Hearing (Written Testimony ofNury Turkel).
5 Id; According to a Sheffield Hallam University study, Nike is at high risk of having Xinjiang cotton in its supply chain due to its relationship with international intermediary manufacturers and Chinese textile companies sourcing

the forced labor of Uyghurs potentially violates the UFLPA and creates the conditions in which the CCP is able to continue committing genocide.
We would like to offer Nike an opportunity to respond to these serious allegations and to provide information regarding its compliance with the UFLPA. We therefore request that you respond to the following questions by May 16, 2023:

1. Do any garments imported into the United States by Nike contain inputs sourced from Xinjiang and/or inputs made with forced labor ofUyghurs?
2. Please provide a detailed description of the steps Nike has taken since the UFLPA took effect to examine its supply chains with respect to forced labor risk in the manufacture of its products. How do these steps differ, if at all, from the methods utilized before the UFLPA took effect?
3. Please provide a detailed description of the steps Nike has taken since the UFLPA took effect to ensure garments it sells that are made from cotton, viscose, lyocell, polyester, leather, and linen are not manufactured using forced labor by Uyghurs or other minority groups who are subjugated by the CCP.
4. Please provide a detailed description of the steps Nike has taken to examine its other supply chains to ensure that other products it sells are not produced by forced labor undertaken by Uyghurs or other minority groups who are subjugated by the CCP.
5. Do any of Nike's garment suppliers use fabric and/or yarn from any of the following corporations (including their subsidiaries): Jiangsu Lianfa Group, Luthai Textile, Huafu Fashion, Texhong Textile, or Weiqiao Textile?
6. Is fabric and/or yarn made by any of the corporations referenced above used in the production of Nike clothing sold in the United States? If so, please list each corporation whose fabric and/or yarn is used in the manufacture of Nike clothing sold in the United States.
7. If fabric and/or yarn from one of the corporations referenced above is used in the production of Nike clothing sold in the United States, what specific steps does Nike take to ensure that none of this material is made in, or contains cotton from, Xinjiang?
8. Has Nike contractually obligated all its garment suppliers to ensure that no inputs from Xinjiang are used in the manufacture of its clothes sold in the United States? Please provide all relevant documents to support such obligations.

cotton and employing state-sponsored labor transfers from the Uyghur Region. Most of the Chinese textile companies identified in the study have subsidiaries in Xinjiang that have employed state-sponsored labor transfers. See, Laura T. Murphy et al., Laundering Cotton: How Xinjiang Cotton Is Obscured in International Supply Chains, SHEFFIELD HALLAM UNIVERSITY (Nov. 2021).

1. What specific methods, other than mere written or verbal assurance from a garment supplier, does Nike use to verify that the supplier is not using inputs from Xinjiang?

I 0. What audit methods does Nike use to verify that suppliers in China-in and outside of Xinjiang-are not exploiting Uyghurs through state-sponsored labor transfers, given that workers in China cannot speak to auditors about forced labor without fear of government retaliation? Please provide all policies, guidelines, requirements, reviews, assessments, analyses, audits, PowerPoint or other presentations, or other documents that describe, govern, implement, or report conduct, processes, or results (without regard to the title of a given document) that are relevant to the conduct of such audits, as well as copies of any communications pertaining to any incident involving actual, alleged, or anticipated noncompliance with the UFLPA.

1. Has Nike conclusively identified every supplier of fabric, cotton, and yarn in its global supply chain for products sold in the United States? If yes, please provide documents and evidence to substantiate Nike's conclusive identification of such fabric, cotton, and yarn suppliers, including any documents evidencing Nike's methodology with respect to this determination. If not, please provide a detailed explanation of how Nike assesses whether its clothing imports comply with the UFLPA, including any documents describing Nike's methodology with respect to such assessments.

2. Does Nike allow cotton and/or other inputs produced in Xinjiang to be used in the manufacture of Nike clothing sold in markets outside of North America?

3. In 2020, reporting revealed that hundreds of Uyghur laborers worked in a factory that manufactures 8 million pairs ofNikes each year.6 Nike claims to have verified that this factory-owned by a leading Nike Supplier, TKG Taekwang-no longer uses Uyghur forced labor. Given its track record of using forced labor, how did Nike verify that TKG Taekwang no longer uses forced labor? And why does Nike still consider TKG Taekwang to be a suitable business partner?

4. Please provide a detailed description of the steps Nike is taking to examine and monitor its supply chains on an ongoing basis. Please provide all policies, guidelines, requirements, reviews, assessments, analyses, audits, PowerPoint or other presentations, or other documents (without regard to the title of a given document) that describe, govern, implement, or report conduct, processes, or results relevant to the conduct of such examination and monitoring.

5. Please provide a detailed description of your audit and compliance plan(s), and the steps taken thus far to implement controls to ensure that Nike products are not produced by forced labor and that all Nike products are obtained and sold in compliance with the requirements of the UFLPA. Please provide all policies, guidelines, requirements, reviews, assessments, analyses, audits, PowerPoint or other presentations, or other documents (without regard to the title of a given document) that describe, govern,

6 Anna Fifield, China compels Uighurs to work in shoefacto,y that supplies Nike, WASH. POST (Feb. 29, 2020).

implement, or report conduct, processes, or results relevant to Nike's audit and compliance plan(s).

The House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party has broad authority to "investigate and submit policy recommendations on the status of the Chinese Communist Party's economic, technological, and security progress and its competition with the United States" under H. Res. 11. Upon your receipt of this letter, please maintain and preserve all hard copy and electronic documents, including electronic communications, related to the subject matter of these questions.

To make arrangements to deliver a response, please contact Select Committee majority and minority staff at (202) 226-9678 and (202) 225-2489, respectively.

Thank you for your attention to this important matter and prompt reply.

Sincerely,

-
Mike Gallagher
Chairman

Ranking Member

So far haven’t heard of impact at NV. Could this be because an ongoing audit this week? Is RIF still possible next week?

A new job has been posted, they are looking to hire someone to develop AI to take processes, procedures, analysis, etc out of the hands of current workers and into the bowels of AI. The worst part is that the job description includes making the AI in compliance with audit standards and SOX public standards. All while following the rules of controls and separation of duties? How can this be taken seriously? Trusting that data is properly handled, accounting is done up to high standards, and that our financial statements are accurate in the hands of newly developed AI? More layoffs coming to FP&A if this job gets filled? Whoever takes this job will be a yes-man and completely wreck our financial accuracy.

Forvis Mazars reduced its United States workforce. This adjustment impacts about 250 employees. Audit, tax, and consulting roles saw reductions. The company explained that attrition rates were lower than anticipated. Other public accounting firms have reported similar low attrition trends.

https://www.goingconcern.com/layoff-watch-26-forvis-mazars-cuts-3-of-the-workforce-in-unusual-post-busy-season-culling/

KPMG is reducing its U.S. audit partner count. Approximately 100 partners are exiting the firm. An early retirement initiative did not meet its goals. The firm aims to align partner ranks with its audit business. Departing partners will receive financial packages and support.

https://qz.com/kpmg-cutting-audit-partners-early-retirement-042426

Really surprised nobody has mentioned this yet.

Trump administration
announces 50-state audit of Medicaid oversight.

We noticed lots of greencard and US citizens were laidoff where H1b in same team survived. This seems one of favoritism for low cost worker. Filed a case for this.
Seems lots of H1b frauds floating around in Texas and Nashville and Oracle is hiring H1b's here ...
The Indian managers who held H1b and laidoff US residents should be questioned.
Lots of news floating around on H1b fraud now.

We just had two team members let go. So sad.

KPMG UK intends to reduce its audit division workforce. Up to 440 employees are expected to be laid off. Nearly 600 staff members were warned about potential job losses. Low staff turnover and changing market conditions are cited as reasons. This move primarily affects assistant managers with accounting qualifications.

https://www.hrkatha.com/news/kpmg-uk-to-layoff-up-to-440-audit-staff/

Audit is losing a managing director on CSBB team. The cover story seems fishy. Oh TAS drama how you never cease to entertain.

Veradigm filed a Form 12b-25 saying it could not file its annual report on Form 10-K for the year ended Dec. 31, 2025 by the deadline without unreasonable effort or expense. The company said prior financial statements for 2021 and certain interim periods in 2021 and 2022 should no longer be relied upon due to revenue misstatements tied to internal control failures. It also said its 2020 financial statements should no longer be relied upon because of misstatements identified during audit procedures. Veradigm said it has not filed multiple periodic reports for 2023 through 2025, including the 2024 Form 10-K and quarterly reports for 2025. The company said Nasdaq delisted its common stock after determining it remained noncompliant with filing and annual meeting requirements.

A I-9 audit is in progress. Gainwell is doing their due diligence to ensure all onshore employees are legally employable. Could be setting themselves up for a future sale.

There is nothing of value that comes out of 90% of the work our ‘researchers’ do. They get paid for making up bumber in the air, dragging projects for 2-3 years until a new manager arrives , tweak and drag some more. Dead after 10 years. rinse and repeat. how stupid does our company have to be to not see through the BS? it’s embarrasing to talk to them from business unit perspective. there are people working genuinely hard, everyday trying to meet the targets and doing honest work, spending hours stressed about meeting baseline — but the research orgs? what the he-l are they doing? made up work no one wants to use? why are we allowing to continue this clear inefficiency?

If any leader with common sense and some ba--s reads this, please conduct an audit of the claims of research projects and actual value delivered over years. Its mind numbingly d-mb to let these projects and organizations survive. Nothing against the people, they are smart ( but scared to speak up) deploy them to do something useful. Oil and gas is not rocket science.

We've been hearing rumors that they plan on closing the Canada audit group in Mississauga. Can anyone confirm?

Audit is in either a bad place morally or the talent level is in the gutter.

Audit is complicit in the mess that will be uncovered in 3 years.

Do they have a pulse? Anyone alive out there?

It’s not that hard. Huge mess in Corp Risk.

PwC is laying off approximately 1,500 employees from its US workforce. This represents about 2% of its total US staff. The firm attributes these reductions to historically low employee attrition rates. Layoffs primarily affect the audit and tax divisions. PwC is also slowing new hiring and internship offers.

https://www.aol.com/big-four-firm-pwc-cutting-140950077.html

Does anyone know what happened to some of the C15s in Internal Audit. I just searched some C15s that I knew in Internal Audit and all their direct reports are there in global directory but they now C14 report to C16….Did the layoffs impact Audit?

Seems for operations, they have to wait for the on site audits to complete and March membership numbers/projections since the end of the subsidies. They can’t show to regulators they are riffing people when we don’t meet TAT

Too many weird financial requests for information from 2-3 years ago. Stop telling us "Audit requests" or "forecast" we are not that stupid, since prior fiscal years have already been audited.

This is the only explanation. And to cover his tracks, let's throw out a good bonus to really make it look like we really did these numbers.

This crisis over poor financial controls and potential fraud is completely unacceptable for a former CFO and now CEO. The only real remediation plans involves Martin being fired. Not him "leaving for personal reasons", but actually fired. Without that there's no reason to believe anything coming out of Kyndryl.

CEO opened a project to boost shareholder value, spent millions of dollar and provided negative growth 😄. What a circus!

There should be an independent audit of vendor relationships and see how much of the quality and value is being lost because of kickbacks system .

How is Audit, AIA in 2026?

This reminds me of ENRON. How could this happen ? Martin buddy, where were you ?

Who is enjoying TAS Senior Managers and above being preoccupied? Best days of the year!

In 2024 they hired Deloitte to do an 'audit' after which they went through the organization with a chainsaw on nebulous promises of AI doing all the work. Unproven promises at that. Then hiring consultants and contractors to replace the fired staff, and not even at lower salaries.
They of course kept vertical stacks of deadwood who made life difficult for everyone. The kind of people who stop productive work and su-k up to upper management without doing productive work themselves.
I've received a few small settlements from class action lawsuits for their bad practices.

Is it common to receive an asset inventory request? Do they do that occasionally as part of a normal audit?

I swear this place gets worse every day. It does not matter who you talk to, audit, risk, commercial, wealth or the random person in the kitchen the complaints and misery never end. The reasons are all over the place and true from everything I have seen and experienced. I hope they start fixing the culture. They won’t. They are not hiring when people leave. Makes you wonder if they want to be sold.

UnitedHealth Group has released findings from multiple independent reviews of its business practices following a June pledge from CEO Stephen Hemsley to conduct a transparent and comprehensive examination of company processes.

The reviews, conducted by FTI Consulting and Analysis Group, examined Medicare Advantage risk adjustment operations, utilization management practices, and Optum Rx’s administration of manufacturer discounts. UnitedHealth has adopted 23 action plans in response, with 65% targeted for completion by year-end and full implementation by March 31, 2026.

Ten things to know:

1. Across all three areas, the auditors concluded that UnitedHealth maintains strong operational controls and documentation. However, a common theme emerged: policy organization, centralization and governance structures need improvement. The risk adjustment review found policies weren’t always codified or recently reviewed; the UM review found corrective actions that weren’t fully remediated; and the PBM review recommended consolidating and streamlining policy documentation.

2. In response to the findings, UnitedHealth said it will ensure all policies and procedures are reviewed and approved at least annually, maintain centralized policy repositories, and enhance enterprise-wide governance structures outlining roles and responsibilities for policy oversight, compliance monitoring and risk assessment activities.

3. FTI reviewed Optum’s risk adjustment diagnostic coding standards against ICD-10-CM guidelines and found the content consistent with official coding guidance. The HouseCalls in-home assessment program received strong scores, with “comprehensive and well-organized” policies and evidence that the majority had been reviewed within the past 12 months.

4. FTI recommended separating coding audit functions from operations. Currently, targeted coding audits directed by Optum compliance are performed by coding resources that report into coding operations rather than compliance. FTI recommended establishing dedicated coding audit resources within compliance itself. UnitedHealth’s action plan confirms it will “establish an independent coding audit team within the broader Optum compliance organization.”

5. UnitedHealthcare holds national NCQA utilization management accreditation with 100% scores. The insurer achieved the accreditation in 2023, which deems its Medicaid and commercial plans 100% compliant with NCQA utilization management standards. When benchmarked against Medicaid peers in external quality reviews, UnitedHealthcare met full compliance in all 12 states examined, scoring 100% on prior authorization and practice guideline standards.

6. Nine of 62 UM audits showed corrective actions that weren’t fully remediated. While 42% of the UM-related audits FTI reviewed had no negative findings, auditors flagged instances where corrective actions from previous audits remained unresolved. FTI found UnitedHealthcare lacks “an overarching control” to ensure full remediation of all audit findings and recommended formalizing a standardized tracking mechanism with dashboards and internal thresholds independent of regulator deadlines.

7. The UM review questioned how quality management is operationalized. FTI observed that while multiple teams have roles in quality improvement for utilization management, “there did not appear to be a documented, centralized process or cross-functional accountabilities” to oversee systemic improvement opportunities. The quality management team’s UM role focuses on maintaining NCQA accreditation rather than leading broader quality improvement activities, FTI found.

8. Analysis Group identified 25 distinct controls in Optum Rx’s manufacturer discount administration. The PBM review concluded that Optum Rx has “built a robust and well-structured governance framework” for collecting discounts from dr-g manufacturers and disbursing them to clients.

9. Optum Rx was advised to improve client reporting on why certain claims don’t generate rebates. While the PBM provides information on claims deemed ineligible for manufacturer discounts upon client request, Analysis Group recommended assessing opportunities to enhance this reporting proactively. The firm also suggested refining escalation processes for manufacturer disputes and non-payment, and evaluating automation opportunities for low-complexity, high-volume processes.

10. All three reviews had limitations. The auditors did not test the effectiveness of controls, did not perform legal analysis, and expressly disclaimed any opinion on legal compliance. FTI’s UM and risk adjustment reviews focused only on current-state policies, not historical practices. Analysis Group noted its PBM review “did not identify deficiencies” but rather “opportunities to further enhance Efficiency

https://www-cnbc-com.cdn.ampproject.org/c/s/www.cnbc.com/amp/2025/12/19/unitedhealth-group-results-independent-audit-investigation.html

I'm told I will get an offer next week. It will be at MD level, in audit. Would I regret it? I have a pretty good setup where I am. Pay would jump a good bit but I would lose my comfort and I don't want to come over if the place is in constant layoff fear. I know how that poisons the culture from a past employer.

Title says it all.

There’s some really strange restructuring that’s making very little sense. Poor customer retention this year. Internal and external auditors evaluating engineers specifically, that I’ve heard of. Lots of resources being directed to other projects/departments.

Get ready for mass layoffs in towers!

The lucky ones are going in the transaction, even if it’s zayo.Better than this toxic a$$ EMT and new ceo leader that all he wants to do is use his audit team as the gestappo!

Unclear if it’ll happen this year since on the ML town hall, he said no but shareholders like to see people’s livelihoods go away so may happen. What do yall think?

Also some audit is going on where they are moving people under one or two people back to the top layer. Why would they be doing that? Flattening the org so to speak.

Most of the Sr staff are replaceable, they actually do not implement or solve any of the work place challenges, but they like to report on other people work. You spend more time explaining what you have done so that they can repost if the work.
If the auditors actually pay attention to the attestation the would realize something is very strong with this company.

Everything is always fine when in reality most of their students are flawed.

There's is no real integrity or leadership.

Anyone have an update on the status of the expenses investigation? An outside firm was brought in to audit the CC swipes.

I have worked closely with RCSA. I have a pretty broad view where we are from a quality standpoint.

It is mostly trash and too high level. Where is audit? Better question, where is Wells Fargo Compliance?

This bank will be back in the news within 4 years. This isn’t risk management. I don’t know what to call it. Investment in a process that results in deterrence?

Has anyone heard anything about Ashburn, VA office and warehouse/workspace being on the DCMA property audit radar? GFE/GFP is not tagged or separated from L3Harris' owned property or equipment -in fact, the entire place is a mess with equipment and property strewn about. The Indian guy who came over from Boeing has known about this for months however he just frets about this massive growing problem yet nothing ever changes. Asking for a friend who wants to leave right before the Sh*t hits the fan.

So, they brought back Ptc, and they brought back the night crew, what's next? Will we see a rebranding of the Audit Team. The companies shrink has had to increase yearly since the loss of them.