The International Auditing and Assurance Standards Board (IAASB) recently approved and is issuing a re-exposure draft (ED) of the proposed International Standard on Auditing (ISA) 600 (Revised and Redrafted), the Audit of Group Financial Statements. The IAASB has modified the proposals and reissued the ED following earlier consultations, and is seeking reaction and comments on two specific matters:

An Enron accountant testified in court Monday that he plundered reserve funds to inflate earnings and make look Enron look more successful than it was.Advertisement

Members of the American Institutes of Certified Public Accountants (AICPA) Center for Public Company Audit Firms (CPCAF or the Center) will now have access to CCH’s SEC Disclosures Checklist tool to assist them in performing high quality public company audits by ensuring they are complying with the disclosure requirements under the rules and regulations of the Securities and Exchange Commission (SEC).

Eight new statements, collectively referred to as the Risk Assessment Standards, have been approved by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA). The new Statements on Auditing Standards (SAS), SAS No. 104 through SAS No.

The Internal Revenue Service (IRS) on Tuesday announced updated tax gap estimates for the 2001 tax year indicating a difference of $345 billion between what taxpayers should have paid and the amount actually paid.

Last week the Financial Accounting Standards Board (FASB) issued FASB Staff Position (FSP) No. FAS 123(R)-4:Classification of Options and Similar Instruments Issued as Employee Compensation That Allow for Cash Settlement upon the Occurrence of a Contingent Event. The guidance in this FSP amends paragraphs 32 and A229 of FASB Statement No.

A new report by the Canadian Public Accounting Board (CPAB) shows the Big Four have to improve their audit quality and adhere consistently to internal and professional standards. The CNW Group reports this is the CPAB’s third public report based on 87 audit engagements performed by the Big Four in Canada. The first public report was issued in October 2004 and the second in August 2005.Canada’s largest four firms are Deloitte & Touche LLP, Ernst & Young LLP, KPMG LLP, and PricewaterhouseCoopers LLP.

Compliance with Section 404 of the Sarbanes-Oxley Act (SOX) is required in 2006. A report by the Public Company Accounting Oversight Board (PCAOB) states that both accounting firms and the public companies they audit will face “enormous challenges” this year as reported in CFO.com. This section of SOX requires that companies document their internal controls. “It is clear to us that the internal control assessment and audit process has the potential to significantly improve the quality and reliability of financial reporting.

The Public Company Accounting Oversight Board (PCAOB) has approved its 2006 budget of $128 million. The accounting industry regulatory agency will use a $19 million excess from a 2005 budget to reduce the 2006 accounting support fee paid by publicly traded companies according to Reuters. Accounting support fee assessments of $109.3 million are projected for 2006 while $136.1 million in fees were assessed in 2005 according to the Compliance Reporter. The approved budget has been passed onto the Securities and Exchange Commission (SEC) for final approval according to Reuters.