Auditing

More Executives Saying 'No Thanks' to CFO Job

Some executives who long dreamt of seeing the title 'Chief Financial Officer' on their business cards are starting to wonder why they ever wanted the job in the first place. The CFO job, thanks to regulatory changes and a push for greater accountability in corporate America, has changed dramatically over the last few years. More scrutiny, more pressure, a huge workload and the stress that goes along with it are causing some professionals to leave the fancy title behind, the New York Times reported.E.

SOX 404 Trends for Next Year Beginning to Emerge

As public companies strive to meet compliance deadlines for Section 404 of the Sarbanes-Oxley Act, trends related to how companies will implement an efficient and effective process beyond the initial year of compliance are beginning to emerge, according to the results of a new survey released by Ernst & Young.
Tax

Top Firm Expands Presence in Florida and Southeast with Mergers

Carr, Riggs & Ingram one of the largest firms in the Southeast region recently announced the mergers of two firms into the Carr, Riggs & Ingram group. The Birmingham, AL based public accounting firm of Mackle, Splawn, Tindall & McDonald joined forces with CRI earlier this month along with the firm of Weathersby, D’Aoust, Harris & Lynn, PA. Carr, Riggs said the mergers will broaden the firm's footprint. "CRI’s long range plan has been to move into larger metropolitan markets.

U.S. Workers, Investors Largely Unaware of Sarbanes-Oxley Act

Eighty percent of U.S. workers and 76 percent of employed investors have never heard of the Sarbanes-Oxley Act of 2002, according to a Hudson survey measuring its impact in the workplace. As the first compliance deadline approaches in December, only nine percent of workers say they have been asked to do something differently in their jobs as a result of the Sarbanes-Oxley Act. Among working investors, defined as owning at least $5,000 in stocks, bonds and mutual funds, only seven percent indicated that Sarbanes-Oxley had increased their confidence as an investor.

SOX Compliance Costs Average $16M Per Company

Survey of corporate boards released this week by RHR International and Directorship reveals annual Sarbanes-Oxley compliance costs average $16 million--a jump of 77 percent from last year. Findings of the first annual Directorship/RHR International Board Survey also reveal that nearly half (47 percent) of companies surveyed do not have a CEO successor in place, although 61 percent expect that CEO leadership transition will go smoothly, according to the poll of almost 270 board directors at U.S. companies.
Community News

PCAOB Releases Additional Guidance for Audits of Internal Control

The Public Company Accounting Oversight Board (PCAOB) this week released the third in a series of staff questions and answers to assist in the implementation of PCAOB Auditing Standard No. 2, regarding audits of public companies' internal control over financial reporting. The questions and answers, prepared by the PCAOB’s Office of the Chief Auditor, emphasize the flexibility provided by Auditing Standard No.
Tax

PCAOB, Advisory Group Propose Audit, Tax Standards for 2005

The Public Company Accounting Oversight Board (PCAOB) on Wednesday sought the advice of its Standing Advisory Group on a series of topics for consideration as possible auditing and related professional practice standards during the group’s meeting in Washington, DC. “We appreciate the expertise of the members of the Standing Advisory Group as we plan the Board’s standards-setting agenda for 2005,” said PCAOB Chief Auditor Douglas R. Carmichael.

SEC Postpones Final Phase-In Period for Acceleration of Periodic Report Filing Dates

On Wednesday, the U.S. Securities and Exchange Commission issued a release adopting amendments to postpone, for one year, the final phase-in period for acceleration of periodic report deadlines that apply to larger companies known as "accelerated filers." The primary purpose of the postponement is to allow additional time and opportunity for accelerated filers and their auditors to focus their efforts on complying with new requirements regarding internal control over financial reporting that were mandated by Section 404 of the Sarbanes-Oxley Act of 2002.
Community News

Deloitte & Touche Announce Plans to Invest and Expand in India, China

Deloitte & Touche has announced plans to invest about $50 million in its business process outsourcing operation in India. Deloitte's global CEO William Parrett told CNBC, "Over the next five years, we are expecting, in terms of new people, new talent, new expertise and appropriate technology, to share our best practice with our clients. We will invest around $50 million into India, both in terms of client service business and a client processing center as well."Deloitte & Touche runs business process outsourcing centers in Mumbai and Hyderabad.
Community News

SEC Contemplates Extension on Some Internal Control Reviews

Section 404. Just the words are enough to add to the collective stress level of corporate America, as executives scramble to clear the next hurdle brought about by sweeping reforms. Dow Jones Newswires reported last week that some smaller companies may get an extension on filing internal control documentation-showing they have effective controls in place and have had the controls attested to by an independent auditor.
Community News

Crowe Chizek Acquires Illinois Accounting Firm

On Monday, Crowe Chizek and Company LLC announced that it will combine practices of its Public Sector Services group with Oak Brook, Ill.-based accounting firm PTW. Effective January 1, 2005, the combination of Crowe and PTW practices will create the largest integrated practice group in Illinois offering governmental consulting, governmental attestation and governmental financial services.
Community News

PCAOB To Hold Forum On Small-Business Auditing

The Public Company Accounting Oversight Board (PCAOB) last week announced a new initiative to bring important information concerning the PCAOB to small business communities. The Forum on Auditing in the Small Business Environment is an invitation-only program for registered accounting firms and public companies in the small business community to learn more about the work of the Board, specifically the PCAOB inspections process and the impact of new auditing standards. The first forum will be held in Costa Mesa, California, on Tuesday, November 30, and Wednesday, December 1, 2004.
Community News

Alliance for SOX 404 Compliance enables firms to secure second wave of SOX 404 work

While the deadline for SOX 404 compliance for most large-cap filers ends Dec. 31, 2004, there is still abundant consulting opportunities for small- and mid-sized CPA firms, and ample opportunity to make the most of the continuing demand for SOX 404 services.
Community News

SunTrust Fires Three, Restates Earnings Upward

SunTrust Banks Inc. has fired three finance executives and reassigned another for failing to treat accounting problems raised by the company's independent auditor, PricewaterhouseCoopers LLP with adequate seriousness, failing to correct errors, and not advising the auditors of the errors, according to a SunTrust statement.Bank officials made the moves after discovering “numerous errors” in the loan loss-allowance calculations for the first two quarters, CFO.com reported, adding that the company would restate earnings upward by over $31.6 million for the first two quarters.
Community News

Deloitte Faces $2B Claim Over Audits of Insurance Company

Deloitte & Touche LLP is facing a $2 billion legal claim related to its audits of a North Carolina insurance company that specialized in reinsurance for aviation risk.Two Japanese insurers, who were forced into bankruptcy, claim they relied on Fortress to minimize their risk. They charge that its unconventional coverage and fraudulent accounting resulted in $3.5 billion in total losses for them and another insurer, who also went bankrupt, the Wall Street Journal reported.Deloitte denies liability.
Community News

SOX Takes Toll on Industry Confidence, Client Ratings of Accounting Firm Performance

The stress of meeting the requirements for corporate financial accountability is taking a toll on confidence and client ratings within the accounting industry, according to the J.D. Power and Associates 2004 Audit Firm Performance Study(SM) released today. The study, which measures audit firm performance in the wake of the Sarbanes-Oxley Act of 2002, is based on interviews with 1,007 audit committee chairs and 944 chief financial officers. The study finds a significant amount of angst among audit committee chairs and CFOs in the industry.
Community News

El Paso Corp. Shareholders Advised to Dump PWC, Audit Committee Members

A Houston company's 22-year relationship with its auditor, PricewaterhouseCoopers, is in jeopardy after two industry research firms place the blame for a massive restatement on the auditors, its audit board and its chief financial officer, the Houston Chronicle reported.El Paso Corp. provides natural gas and related energy products, according to the company's website. Industry research firms Industrial Shareholder Services and Glass Lewis & Co.
Community News

Companies Scrambling to Meet Dec. 31 Internal Controls Deadline

With time running out for company's to prove that their internal controls are sound, financial staffers and outside accounting firms are maxed out as the year-end deadline looms, the Washington Post reported.The new rule, brought about by the Sarbanes-Oxley Act of 2002, has thousands of public companies and their external auditors scrambling to certify the strength of internal controls.Controls are the backbone of a company's financial systems, the Post reported.

PCAOB Announces Standing Advisory Group Meeting

The Public Company Accounting Oversight Board announced this week that it has scheduled a Standing Advisory Group meeting for November 17 and 18 to discuss potential future auditing and related professional practice standards, as well as a proposed standards-setting agenda for 2005. The group will meet on Wednesday, November 17, from 1:30 to 5:15 p.m., and on Thursday, November 18, from 8:30 a.m. to 3:30 p.m. The meeting will be held in the Phillips Collection Ballroom at the Radisson Barceló Hotel, 2121 P St, NW, Washington, DC.
Tax

Recent Report Shows Drop in IRS Corporate Audits

Results of a recent examination of government data by Syracuse University's Transactional Records Access Clearinghouse show that the Internal Revenue Service has performed fewer corporate audits in the first six months of fiscal 2004, the Associated Press reported.Despite claims by the IRS that it would ramp up audits in an attempt to crack down on tax cheats, TRAC survey reported Monday that the IRS performed 7,794 corporate audits from October 2003 through March 2004, down 26 percent from the pace in fiscal 2003, the AP reported, adding that hours spent auditing corporate tax returns was

Pages