Computer giant IBM disclosed in a press release late Monday that the SEC has launched an investigation into its accounting practices."The SEC is seeking information relating to revenue recognition in 2000 and 2001 primarily concerning certain types of customer transactions. IBM believes that the investigation arises from a separate investigation by the SEC of a customer of IBM's Retail Store Solutions unit.

With implementation requirements related to the Sarbanes-Oxley Act coming fast and furious from the SEC and PCAOB, how is a company to cope with all the new rules? HandySoft and Plumtree Software think they may have an answer.The firms announced last week that they have developed the Sarbanes-Oxley Accelerator, a solution that helps publicly traded companies comply with the Sarbanes-Oxley Act of 2002.

As part of its ongoing attempts to show the buck stops in the CEO’s office, the SEC voted this week to approve strict new internal control requirements — requiring CEOs to sign off that the rules are in place and being followed.The new requirements would apply to public companies under the jurisdiction of the Securities and Exchange Commission and is widely applauded by industry groups, including the American Institute of Certified Public Accountants.The SEC voted to adopt rules concerning management's report on internal control over financial reporting and certification of disclosur

With a global set of auditing standards the goal, the organization representing accountants worldwide is ready to open its doors to external oversight for the first time —part of the industry’s ongoing effort to restore its reputation after U.S. corporate scandals. The International Federation of Accountants, which sets global best-practice auditing rules, is looking for a prominent group of regulators to head the oversight group.

The San Diego U.S. Attorney's office has added to Gateway's woes by launching a criminal investigation into the computer maker's accounting practices. The Securities and Exchange Commission is also investigating accounting issues at Gateway.The U.S. Attorney investigation covers financial reporting beginning in fiscal year 2000, as does the SEC inquiry. Gateway indicated that the SEC investigation is expected to conclude during this quarter or next quarter.

Companies that engage their audit firm for significant tax consulting services are less prone to revising their financial statements, an American Accounting Association study has found. "Companies that spend a large amount on tax services from their audit firm typically had fewer restatements than those who spent small amounts or zero," the study said.

The Canadian Securities Administrators have announced that Canadian firms registered with the Securities Exchange Commission (SEC) will be permitted to file their financial statements in Canada using US generally accepted accounting principles (GAAP). Of the nearly 1,300 foreign companies registered with US stock exchanges, 500 are Canadian. The rule takes effective for fiscal years beginning January 1, 2004, or later. Canadian firms must apply for the exemption.

Implementation of the Sarbanes-Oxley Act of 2002 is costing corporate America a bundle, for everything from public relations to insurance to fees for attorneys, directors and auditors.

The American Federation of Labor/Congress of Industrial Organizations (AFL-CIO) is urging Sprint shareholders to vote against the continued appointment of Big Four firm Ernst & Young as Sprint's auditor.