Although they play a less visible role than the Securities and Exchange Commission, insurance companies carry a big stick today when it comes to enforcing accounting reform. Companies that don't measure up to insurance company standards can find their D&O policies canceled or their rates raised.D&O stands for directors and officers liability coverage.

AOL Time Warner recently announced it is being investigated by the Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ). But federal authorities are not likely to examine AOL's subscriber base, a key non-financial metric of critical importance to analysts and investors in gauging future revenues.

Here is a list of items to help you detect fraud in your company or a client's company. 1. Unusual BehaviorThe perpetrator will often display unusual behavior, that when taken as a whole is a strong indicator of fraud. The fraudster may not ever take a vacation or call in sick in fear of being caught. He or she may not assign out work even when overloaded. Other symptoms may be changes in behavior such as increased drinking, smoking, defensiveness, and unusual irritability and suspiciousness.2.

The American Institute of CPAs (AICPA) has e-mailed an alert to its members, advising them of its plans for transitioning to the new regulatory framework established by the Sarbanes-Oxley Act of 2002. As part of its transition plan, AICPA will:Work with the Securities and Exchange Commission (SEC) to establish an orderly transition of the activities of AICPA's SEC practice section.

President Bush has signed into law the Sarbanes-Oxley Act of 2002, one of the most far-reaching bills ever to address corporate fraud and public accounting.Support for the Bill, which many thought was too aggressive just a few weeks ago, was fueled by multiple reports in July of corporate accounting scandals, defrauding investors, and a plummeting stock market.The Bill establishes a number of provisions, including the following which directly affect the accounting profession:The establishment of an independent not-for-profit Public Company Accounting Oversight Board, su

U.S. lawmakers reached agreement on accounting reform legislation and sent the bill to President Bush for his signature.

James E. Copeland, chief executive officer of Deloitte & Touche, has announced his firm is assembling a team to develop a model for a new approach to restoring investor confidence. The new approach involves creation of a national board to investigate business failures and recommend steps to prevent similar failures in the future. The concept is reminiscent of a similar initiative for audit failures introduced by the Public Oversight Board in the mid-1990s.

By a vote of 97 to 0, the Senate approved an amended version of S.2673, the accounting reform bill authored by Senate Banking Committee Chairman Paul Sarbanes.This bill will create an oversight board that is empowered to set accounting and auditing standards and fine or ban any individual or firm that violates them.

Weiss Ratings, a rating agency whose revenues come from consumers rather than the companies it rates, prepared a report on the role of auditors in the worsening crisis of confidence on Wall Street and sent it to the Senate. The paper contains report cards on major audit firms, and it suggests that similar reports be prepared and disclosed to the public in the future.