Practice Management news

Practice

SEC Proposes Disclosures About Ethics and Controls

The U.S. Securities and Exchange Commission unanimously agreed to issue for public comment proposed rules that would implement recent legislative reforms enacted in response to accounting scandals. The proposed rules will require public companies to report on their internal controls, codes of ethics, and the financial expertise of their audit committees.
Community News

E&Y's Privacy Falls Prey to Divorce Court's Discretion

Ernst & Young fought to preserve the privacy of information related to the firm's valuation and its chief executive's compensation. But more details were exposed in a divorce court ruling than any accounting firm would want its competitors to know.
Practice Management

Four CPAs Win 2002 AICPA Hall of Fame Awards

Ajilon Finance and the American Institute of Certified Public Accountants (AICPA) have announced the winners of the 2002 AICPA Business and Industry Hall of Fame Awards. The winners will be inducted into the Hall of Fame at the AICPA's National Industry Conference in New Orleans on October 18, 2002.This year's winners are:Don L. Blankenship, President, Chief Executive Officer and Chairman of the Board of Massey Energy Company.Vernon D.
Community News

Ernst & Young Sees Strong Revenue Growth Ahead

Ernst & Young reported worldwide revenues of $10.1 billion for the fiscal year ending June 30, 2002, representing growth of 2.7%. Chairman James Turley said he expects a return to double-digit revenue growth in the current fiscal year.A breakdown by line of service shows revenues increased 2.9% to $5.8 billion for assurance & advisory business services, 1.5% to $3.4 billion for tax and law, and 9.0% to $0.7 billion for corporate finance.
Practice Management

Former Execs File Lawsuits Over Accounting Disputes

During the past week, two more companies found themselves facing lawsuits from former executives for wrongful discharge after incidents involving ethics and financial reporting. Attorneys say it is a growing area of litigation.The lawsuits were filed against Solectron and Ovitz's Artists Management Group.
Practice

Deloitte Tells How Firms Can Win Accounting Talent War

In the latest in a series of speeches on the importance of integrity and quality, Deloitte CEO Jim Copeland explained why he sees a talent war ahead and what accounting firms can do to win the war.
Practice Management

CCR Expands on New Wave of Interest in Regional Firms

Carlin, Charron & Rosen recently announced its merger with DiSanto Bertoline & Company. The merger, which is expected to be completed and effective this week, broadens the firm's core client base and expands its presence, making it the largest professional services firm in Connecticut as well as the largest regional accounting firm in New England. Altogether, the newly merged firm will have 250 partners and employees.
Practice

IMA Opens Its Free 'Ethics Hotline' to Non-Members

Margaret Butler, president of the Institute of Management Accountants (IMA), announced that the IMA's confidential "ethics hotline" has now been opened to non-members. She said the hotline is particularly well-suited for small businesses. President Butler said the opening of the hotline is a response to an unprecedented need for businesses everywhere to maintain the highest ethical standards.
Practice Management

SEC And DOJ File Charges Against Former Enron CFO

The U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) have both filed charges against Enron's former chief financial officer, Andrew Fastow. The charges relate to Mr.
Practice Management

Former WorldCom Controller Instructed to Falsify Records

The former controller of WorldCom Inc., David F.
Practice Management

Kmart's CFO Steps up to Accounting Questions

Bankrupt retailer Kmart explained the impact of accounting irregularities in a Form 10-Q filed with the U.S. Securities and Exchange Commission (SEC) this week. Chief Financial Officer Al Koch said several employees involved in questionable accounting practices are no longer with the company.Speaking to the concerns about vendor allowances recently raised in anonymous letters from in-house accountants, Mr.
Practice Management

Panel Unveils Plan to Promote Fairness in Executive Pay

The Conference Board's Blue Ribbon Commission on Public Trust and Private Enterprises unveiled a sweeping reform plan to address the types of unfair executive pay practices that have come under increased public scrutiny in connection with a recent wave of accounting scandals. Lawmakers and regulators have tried in the past to reform executive pay by expanding disclosure requirements and revising tax policies. But the panel says these efforts have not been entirely successful.
Practice Management

GE's Ex-CEO Gives Up Perks as SEC Opens Inquiry

In the latest ripple effect of the recent wave of accounting scandals, Jack Welch, former CEO of General Electric, asked GE to take back some retirement perks made public in his recent divorce proceeding. Separately, the company received word of an inquiry into the matter by the U.S. Securities and Exchange Commission (SEC).
Technology

Recession Plus PCs Equal More Fraud

by Camico InsuranceInternal or occupational fraud continues to cause enormous problems for CPAs. While audit engagements historically generate more losses than other engagements, all types of engagements are affected by fraud, from non-attest services to tax return preparation. Nearly one-third of all claims losses over $100,000 received by CAMICO stem from some kind of fraudulent activity.
Practice Management

9/11 One Year Later: Firms Brace for Cyber Attacks

One year after the terrorist attacks on the World Trade Center and the Pentagon, most security experts polled by CSO Magazine said they consider the threat of electronic attacks a greater concern than the risk of future physical attacks. Nearly half expect a major cyber attack by a terrorist organization within the next year. Thanks to the foresight and hard work of security workers everywhere, the nation is better prepared today than it was a year ago.
Practice Management

Ford Defends Its Accounting for Financing Incentives

In an unusual Form 8-K filed with the U.S. Securities and Exchange Commission (SEC) on September 10, 2002, Ford Motor Company defended its accounting for low-rate financing incentives against statements made in an analyst's report.
Practice

Companies Plan For Possible Shift in Stock Option Accounting

A survey of large U.S. employers conducted by Mercer Human Resource Consulting shows most companies expect a change in stock option accounting over the next five years. Not all have fully analyzed how this change will affect their compensation policies.
Practice Management

SEC Settles with Ex-Officers of Sunbeam Corporation

The U.S. Securities and Exchange Commission (SEC) announced the settlement of charges against former officers of Sunbeam Corporation. The company's former CEO and CFO agreed to pay civil penalties and are permanently barred from serving as officers or directors of any public company.
Community News

National MAP Survey Underway

In August, the American Institute of Certified Public Accountants' Alliance for CPA Firms (PCPS) and the Texas Society of Certified Public Accountants (TSCPA) announced that they had joined forces to produce the 2002 PCPS/TSCPA National Management of an Accounting Practice (MAP) Survey.
Practice Management

How to Win an Auditor Beauty Contest: Taking Advantage of Auditor Changes

by Bruce MannMore companies are giving serious attention to the auditor selection process than ever before, opening the door for firms to compete for assignments on a more level playing field. The days when management was able to pick its favorite auditor without oversight from the board or audit committee have passed. First it was the demise of Arthur Andersen that forced many companies to interview for new auditors.

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