Phil Livingston, the president and CEO of Financial Executives International (FEI) said in the latest issue of the association’s e-newsletter, FEI Express, the FEI has been hearing from its members about the changes in corporate policies that companies are making to improve auditor independence. He encouraged companies to issue press releases indicating the changes they’ve made. He also asked for input on the FEI’s code of ethics.

In Congressional testimony on February 14, 2002, James G. Castellano, the chairman of the American Institute of CPAs (AICPA) said the Institute plans to release a draft of a new standard by the end of February. The objective of the new standard is to help auditors detect new types of management fraud. AICPA views the standard as mission-critical to the financial reporting world of the future -- a world in which companies make real-time disclosures over the Internet, and auditors provide contemporaneous assurance the information is reliable. Mr.

College accounting professors are returning to the podium this semester with a new topic: Accounting practices and Ethics in light of the Enron situation. "Suddenly accounting professors are aware that accounting is no longer accurate and reliable," said Michael Granof, professor of accounting at the University of Texas at Austin.Even before all the facts are known, accounting students are finding Enron is in use as a case study in the classroom.

In testimony presented on February 11, 2002 at the New York State Senate Public Hearing on Independence in the Post-Enron Era, the National Conference of CPA Practitioners (NCCPAP) called upon state legislators to consider special rules for small and regional CPA firms.

Many people were surprised by the Enron collapse and lost money as a result. But James Chanos, head of a short-sell investment boutique, was not one of them. His firm profited from anticipating the company's demise. So Congress asked him to testify as to how he knew what no one else did. How to Spot the Early Warning SignsSurprisingly, many of the warning signs were out there in full view to anyone with an understanding of accounting.

When did the accounting profession become known as the accounting industry? What happened to change it so dramatically? And what does the future have in store for tomorrow’s accountants? “Industrial Era” TacticsThe Chicago Tribune reports, it all started with the savings and loan crisis fifteen years ago (“Accounting Industry Counts on its Clout,” February 6, 2002).

The Federal Bureau of Investigation (FBI) and the Securities and Exchange Commission (SEC) are investigating the accounting practices at Global Crossing, the telecommunications company that filed the fourth largest corporate bankruptcy in U.S. history last month.

The New York State Society of Certified Public Accountants (NYSSCPA), testified yesterday at hearings conducted by Senator P. LaValle, Chair of the New York State Senate Higher Education Committee.The testimony addressed CPA independence and regulation in light of the recent bankruptcy of the Enron Corporation.

Deloitte & Touche has announced its plans for separating audit from consulting services. In so doing, it joins Andersen, KPMG, PricewaterhouseCoopers and Ernst & Young, making support for this audit reform unanimous among the Big Five.Deloitte had told various partners of its decision to split off its consulting arm, but it is still unclear how the move will be accomplished.