I attended a seminar recently where the host law firm reviewed the SEC audit activity of private equity firms that has been spawned by Dodd-Frank. In attendance was a private equity professional whose firm had just completed one of these audits. His experience matched the law firm’s report that the audit was more of a fact finding and information gathering exercise than an actual audit by knowledgeable industry participants.
In fact, the private equity professional had enough heartburn about the government auditors’ qualifications that he asked them about their background. He was told that they could not disclose their background. So I immediately thought about a couple of guys who had just transferred from a job at IRS where they had worked on Lois Lerner’s nonprofit team to join the Dodd-Frank audit team.… Read this article