Auditing

A&A

FEI files amicus curiae brief with Supreme Court in support of petition for review of Textron case

Financial Executives International (FEI) has filed an amicus curiae "friend of the court" brief with the Supreme Court of the United States in support of a petition for review of the U.S. vs. Textron case.

KPMG: Ten to-do's for audit committees in 2010

To help audit committees focus their agendas on key challenges in the year ahead, KPMG's Audit Committee Institute again offers its annual "memo" to directors, highlighting issues that should be top of mind.
Practice Management

SAS 99 -- 17 ways to protect yourself from malpractice

Congress mandated as Sarbanes-Oxley (SoX) for public companies and their auditors. Think of SAS 99 as SoX for everyone else.

Very few companies are ready to handle government or regulatory investigations

Even though 24.3 percent feel the risk of a government investigation is higher today than a year ago, only one-fifth (20.8 percent) of executives say their organizations are "very ready" to handle a government or regulatory investigation, according to a recent Deloitte online survey.In fact, 26.5 percent of executives surveyed say their organizations have already been subject to a government or regulatory investigation in the past two years."In 2008, not only did the number of investigations increase, but we witnessed a change in how investigations are conducted," said Barefoot Bankhead,

Are clean opinions materially misstated?

WARNING: Reading this article will be painful By Gary Zeune, CPA

PCAOB says post-Sarbanes-Oxley audits still deficient

The Public Company Accounting Oversight Board has released a report summarizing the inspection findings of the eight domestic accounting firms that were subject to annual inspections over the past four years. The PCAOB focuses its inspections on those areas of an audit likely to pose the most significant challenges for an auditor or to pose the most significant risk to investors of misstated financial statements.

Center for Audit Quality responds to issues regarding Section 404 compliance

As a result of the current market conditions, Center for Audit Quality (CAQ) member firms have raised questions regarding Section 404 compliance when an issuer exits accelerated filer status and becomes a non-accelerated filer.

PCAOB proposes seven new risk assessment auditing standards

The Public Company Accounting Oversight Board voted this week to propose for public comment a suite of seven new auditing standards related to the auditor's assessment of and responses to risk and related conforming amendments.
Technology

Microsoft Hires Accounting Firm to Audit MSN Users

Microsoft recently hired accounting firm PricewaterhouseCoopers (PwC) to audit the number of people who use the MSN network of Internet services. Industry observers say this engagement may be the first of many, as more opportunities open up for accountants to expand their assurance services. PwC's role was to provide independent verification of the number of unique users (300 million), who visited MSN from February 1, 2002 to May 31, 2002.

Canada Develops Principles-Based Independence Standard

The Canadian Institute of Chartered Accountants (CICA) has proposed a new kind of standard that would provide a systematic, principles-based framework for analyzing auditor independence.The CICA is optimistic that its 68-page proposed standard will eliminate the problems associated with rules-based independence codes like those used in the U.S.

PCAOB adopts new audit committee communication rule and amends tax services rule

The PCAOB voted last week to adopt Rule 3526, Communication with Audit Committees Concerning Independence, and an amendment to Rule 3523, Tax Services for Persons in Financial Reporting Oversight Roles. The Board adopted Rule 3526 to enhance communication between audit committees and registered firms regarding the firm's independence.
Community News

KPMG presents first place and $25,000 to University of Virginia team

KPMG PRESENTS FIRST PLACE AND $25,000 TO UNIVERSITY OF VIRGINIA TEAM IN SECOND ANNUAL STUDENT AUDITING COMPETITION University of California – Santa Barbara, Bentley College Collect $15,000 and $10,000 for Second and Third Place WinsNEW YORK, April 22 – KPMG, the U.S. audit, tax and advisory firm, today announced that a team of four students from the University of Virginia has won KPMG’s national audit case competition for the second year in a row. For its win, the accounting department of the University of Virginia received $25,000 and each student team member $3,000.
Tax

KPMG establishes IFRS institute to foster smooth adoption in the united states of international financial reporting standards

KPMG Seeks to Initiate Stakeholder Dialogue Around Global Accounting ModelNEW YORK, APRIL 22 – KPMG LLP, the audit, tax and advisory firm, today announced the establishment of the KPMG IFRS Institute to raise awareness and address the information needs of companies, investors, academics and others who may be affected by a transition by U.S. companies to International Financial Reporting Standards (IFRS).“As companies expand their reach and economies globalize, the ability to compare financial statements across borders has become imperative.

PCAOB cites deficiencies in Grant Thornton audits

The Public Company Accounting Oversight Board (PCAOB) has found deficiencies in five audits conducted by Grant Thornton.Grant Thornton failed "to identify or appropriately address errors in the issuer's application of GAAP," said the PCAOB, which acts as an audit watchdog and annually inspects accounting firms with more than 100 public-company clients.Grant Thornton also did not perform certain audit tests to back up its opinions, the April 4 report said."In some c
A&A

IRS shifting audit focus to small corporations from largest corporations

The number of Internal Revenue Service (IRS) field audits of the nation's largest corporations, companies with more than $250 million in assets, declined from 4,693 in 2005 to 3,308 in 2007, while the IRS has told Congress that the number of audits of all corporations has increased, according to the latest report from the Transactional Records Access Clearinghouse (TRAC).
A&A

PCAOB announces small business audit forums

The Public Company Accounting Oversight Board has announced the 2008 series of its Forums on Auditing in the Small Business Environment. These forums are designed to help share important information with registered public accounting firms and public companies operating in the small business community. The 2008 agenda will include a discussion of practical quality control policies and procedures and evolving accounting and auditing issues. The discussions also will address the application of certain auditing standards and observations from the Board's disciplinary orders.

Center for Audit Quality presents first Year in Review report

Marking its first year in existence, the Center for Audit Quality (CAQ) has released a Year In Review report on the organization's emergence as a voice for public company auditors and its efforts to foster confidence in the audit process. Since its inception in January 2007, the CAQ has launched an ambitious effort to improve financial reporting, reached out to investors and other market stakeholders, forged solid relationships with federal regulators, and offered real-world advice to members. The Center's Public Dialogue Tour has gathered ideas on improving financial reporting
A&A

FIN 48-2: FASB upholds FIN 48 for public companies; non-public entities may defer

The Financial Accounting Standards Board (FASB) has decided to allow nonpublic entities to defer implementation of FIN 48 to fiscal years beginning after December 15, 2007. To address this issue, the Financial Accounting Standards Board has issued FASB Staff Position (FSP) FIN 48-2, Effective Date of FASB Interpretation No. 48 for Certain Nonpublic Enterprises.
A&A

PCAOB approves Auditing Standard No. 6 in response to FASB 154

The Public Company Accounting Oversight Board has voted to adopt Auditing Standard No. 6, Evaluating Consistency of Financial Statements, and an accompanying set of amendments to the Board's interim auditing standards. The Board adopted the standard and amendments in light of the Financial Accounting Standards Board's (FASB) issuance of Statement of Financial Accounting Standards No. 154, Accounting Changes and Error Corrections, and impending issuance of Statement of Financial Accounting Standards, The Hierarchy of Generally Accepted Accounting Principles.

SEC reaches settlement with Monster's McKelvey for stock options backdating

The Securities and Exchange Commission has filed a settled enforcement action against Andrew J. McKelvey, the former Chief Executive Officer of Monster Worldwide, Inc., for his participation in a multi-year scheme to secretly backdate stock options granted to Monster officers, directors, and employees.The Commission's complaint alleges that, beginning in 1997, McKelvey and others backdated stock option grants to coincide with the dates of low closing prices for the Company's common stock, resulting in grants of in-the-money options to numerous individuals.

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