Auditing

Senate May Reverse Closing of Iraq Auditor’s Office

The military authorization bill signed by President Bush in mid-October calls for the termination of the Office of the Special Inspector General for Iraq Reconstruction (SIGIR) by October 1, 2007. Susan Collins (R – Maine), chairwoman of the Senate Committee on Homeland Security and Government Affairs, says that provision was not in the conference version of the bill, the New York Times reports. In addition, some analysts say that the content of reports issued by the office, which were critical of weapons oversight by the U.S. military and accounting methods used by the U.S.
Technology

More Room for Compliance & Control Automation

Approva® Corporation has surveyed 200 high-level finance, internal audit and IT executives at leading public companies and the survey results found that many companies still manually audit a large portion of their organization’s internal controls.Approva, a producer of continuous controls monitoring and audit software, announced the survey results this week.
Practice Management

PCAOB Issues Fair Value Auditing Guidance

The Public Company Accounting Oversight Board (PCAOB) on Tuesday issued staff questions and answers providing direction for auditing a company’s estimation of the fair value of stock options granted to employees pursuant to Statement of Financial Accounting Standards No. 123 (Revised), Share-Based Payment (FAS 123R).This series of questions and answers is limited to addressing auditing the fair value measurements associated with determining compensation cost.
A&A

More Restatements in 2006 for Smaller Accounting Firms - Update 1

Of the 928 companies that announced in the first half of 2006 that they would file restatements of their results for prior periods, 504 were clients of firms other than the eight largest accounting firms, according to data compiled by AuditAnalytics, a company that analyzes audit problems, the New York Times reports.
Tax

Avoid Using “Accounting Gimmicks”

Warren Buffett, the second richest man in America after Bill Gates, told his senior managers at Berkshire Hathaway Inc. in a memo published by FT.com, to resist the temptation to use “accounting gimmicks” to manipulate earnings, Bloomberg.com says. “Every time you hear the phrase ‘Everybody else is doing it’, it should raise a huge red flag,” Buffet wrote.
Tax

SOX Compliance Can Transform Payroll Management

Time tracking in today’s service businesses is central to understanding costs, to the billing process and tracking salary information or paid leave, all issues with important Sarbanes-Oxley (SOX) implications, according to Curt Finch , writing for ecommercetimes.com. The Human Resource payroll professionals need to understand how their functions can lead to risk or greater profitability for the company as a whole.
Practice Management

PCAOB Drafts Rewrites to AS2; Senior Administrators Moving On

Signs that the Public Company Accounting Oversight Board (PCAOB) is entering a new phase of its development came recently when the Board submitted a draft of changes to the Auditing Standard 2 (AS2) to the Securities and Exchange Commission (SEC) that are said to modify confusing definitions and eliminate the need for separate internal control and financial statements audits.
A&A

Summary of Smaller Firm PCAOB Inspection Deficiency Analysis

The Center for Public Company Audit Firms (CPCAF) has issued their current Smaller Firm PCAOB Inspection Deficiency Analysis. Small firms are defined as those with 100 or fewer Securities and Exchange Commission (SEC) issuer audits. This analysis did not include analysis of the Public Company Accounting Oversight Board's (PCAOB) larger firm inspection reports. The public portion of 324 PCAOB smaller firm inspection reports issued between January 21, 2005, and August 15, 2006, were identified in this analysis.

Regulators Begin Extra-Territorial SOX Inspections

The Public Company Accounting Oversight Board (PCAOB) has confirmed that more than a dozen inspections of foreign audit firms have been carried out under the U.S. Sarbanes-Oxley Act of 2002 (SOX). The London offices of Ernst & Young are among those identified by the media as subject to recent inspections.

Section 404 Compliance Results in Agenda Re-focus

A survey conducted by the Audit Committee Institute (ACI) of KPMG International and the National Association of Corporate Directors found that although a majority of audit committee members rate their committee as "very effective", some feel improvement can be made-including oversight of accounting judgments and estimates, risk management and agenda setting. While 70 percent of the 317 audit committee members polled rated their committee as "very effective" and nearly 85 percent rated themselves as "very effective" on ensuring the independence of external auditors from management and
Community News

Dell Delays Filing Due to Accounting Issues; Battery Technology May be Problem

Dell Computer, Inc. announced Monday that it would delay filing its Form 10-Q for the second quarter because of questions raised in a previously announced informal inquiry by the Securities and Exchange Commission (SEC) into accounting and reporting matters from 2005. The company also announced that the U.S.
Technology

Closely Held Companies Adopting Sarbanes, Increasing Demand for Auditors

Privately owned companies, although not bound by the requirements of the Sarbanes-Oxley Act (SOX), are feeling the effects of the law in specific areas of their businesses, as well as the impact of widespread public commitment to stronger internal controls that the law has helped to create.
Tax

IRS Auditing PwC’s Pension Plan, Deductions, Income Transfers

PricewaterhouseCoopers LLP (PwC), the world’s largest accounting firm, is being audited by the Internal Revenue Service (IRS), Bloomberg News reported Friday. Officials at PwC initially refused to comment on the Bloomberg report, which was based on company documents and IRS documents provided to Bloomberg.
Community News

PCAOB Auditing in the Small Business Environment Forum Heads to Boston

The Public Company Accounting Oversight Board (PCAOB) is hosting a Forum on Auditing in the Small Business Environment in Boston, Mass., on Friday, September 8.

Towards a Better Understanding of the Financial Statement Auditor Reports

The American Institute of Certified Public Accountants (AICPA), the American Accounting Association (AAA), and the International Auditing and Assurance Standards Board (IAASB) have joined forces to launch a research initiative that will provide a better understanding of users’ perceptions of the financial statement audit and the auditor’s report.

More SOX Relief for Smaller Companies, Foreign Private Issuers

The Securities and Exchange Commission (SEC) has issued two releases granting further relief from compliance with Section 404 of the Sarbanes-Oxley Act of 2002 (SOX) to smaller public companies and many foreign private issuers.Advertisement

PCAOB Issues Audit Practice Alert Regarding Options

The Public Company Accounting Oversight Board (PCAOB) on Friday announced an initiative to publish, from time to time, Audit Practice alerts issued by the Board’s staff.
Tax

Auditors Limited In Responding to Criminal Acts

Auditors sometimes find evidence of criminal or questionable acts in the course of their work.
Community News

CGA-Canada Accepts Independence Standard

The Certified General Accountants Association of Canada (CGA-Canada) welcomes the Canadian Public Accountability Board’s (CPAB) decision to accept the CGA Independence Standard, giving effect to the required rule change as of June 20, 2006."CGA-Canada is responsible for setting professional standards for itsmembers and has an obligation to protect the public and ensure CGAs maintain the highest ethical standards," says Anthony Ariganello, FCGA, CPA (Delaware), President and Chief Executive Officer of CGA-Canada.
Community News

Stuart Maue Completes Nation’s Largest Legal Audit

Stuart Maue, the nation’s oldest and premier legal auditing firm, has completed work as the legal auditor and testifying expert in the largest attorneys’ fee dispute litigation in the history of the United States. The litigation involved Purdue Pharma L.P.’s $400 million claim for attorney fees and expenses resulting from defense of its prescription pain killer, OxyContin. Purdue Pharma had asked its insurer, Steadfast Insurance Co., a unit of Zurich Insurance Co. of Switzerland, to reimburse it for all costs associated with its defense of the litigation.

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