September is National Recovery Month and AccountingWEB has decided to examine the impact addiction can have on a family, a business and a community, by taking a closer look at the life of Earl Ford McNaughton.

In his own mind, everything Earl McNaughton did in his business affairs was good and proper. The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) did not agree and burst his bubble in 2004. The federal investigations, the mountain of debt and no less than nine lawsuits initiated over unpaid loans, totaling some $6 million, signaled the beginning of the end for Earl McNaughton.

McNaughton also apparently had an obsession for collecting antiques, particularly those originating in his area, and extended to the saving of local historical buildings. The Fort Wayne Journal Gazette reports almost 10 percent of the value of the First National Bank of Fremont was in antiques and fine art, at the time the bank was sold. The average amount similarly sized banks hold in "other assets" is half this amount, according to the FDIC. He collected land and buildings as well, although the property was sold to pay back loans or brought up at auction to satisfy debts.

Dr. Werner Muensterberger, author of the book, Collecting: An Unruly Passion, told interviewers, "I've seen a number of people, who after a severe trauma, turn to collecting. You could say they were traumatized and lost their faith in the world, in people and reliance in general and turned to something tangible. There is little question that collecting is more than the simple experience of pleasure. If that was the case, one butterfly or one painting would be enough. Instead, repetition is necessary," according to the Collector Cafe.

What trauma, if any, began McNaughton's obsession with collecting is not known. What is know is that his collecting played a significant role in landing him in his current traumatic situation.

To read the rest of Earl McNaughton's story see: "Indiana Community Weathers Collapse of Local Bank", Click Here.

The Center for Public Company Audit Firms (CPCAF) has issued their current Smaller Firm PCAOB Inspection Deficiency Analysis. It has identified the top ten deficiencies and the top five audit performance issues found during audits of smaller firms between January 21, 2005, and August 15, 2006.

Read AccountingWEB's summary of the report at: "Summary of Smaller Firm PCAOB Inspection Deficiency Analysis", Click Here.

SUBSCRIBER INFORMATION
Unsubscribe to stop the Weekly Business Brief news wire being delivered to your inbox.

If you've forgotten your AccountingWEB.com login details, we'll send you a reminder. Just click here.