PCAOB

PCAOB Chairman Warns More Restatements Could be Coming

With field work due to end in December on the latest round of auditor inspections, Public Company Accounting Oversight Board Chairman William McDonough cautioned this week that more financial restatements may be coming.The PCAOB was created by the Sarbanes-Oxley Act to oversee the accounting industry and set auditing standards.Advertisement
Tax

Fraud Victims Look to Fair Funds for Payback

An effort by the Securities and Exchange Commission to repay investors who lost money because of corporate fraud is getting mixed reviews.The victim compensation funds, called “Fair Funds,” were established under the Sarbanes-Oxley Act of 2002.

SEC Considers Easing SOX Rules for Small Businesses

Strict regulations governing corporate accounting and internal controls passed as part of the Sarbanes-Oxley Act of 2002 are placing an unintended burden on small business, which the Securities and Exchange Commission is planning to address, Dow Jones News reported.Testifying before a House financial services subcommittee, Alan Beller, director of the SEC's corporation finance division, told lawmakers last week that the SEC is considering a way to "recalibrate" rules for smaller businesses, which were not exempted from the Sarbanes-Oxley Act.
Community News

SEC Warns Big Four Against Dropping Small Clients

The Securities and Exchange Commission is worried that the Big Four accounting firms are using the Sarbanes-Oxley Act as a handy excuse to drop smaller, less profitable audit clients.The firms, however, say they simply do not have the staffing they need to help big companies meet the new internal control requirements of the law while serving the same number of smaller businesses, Bloomberg reported.Ernst & Young CEO James Turley, for example, has testified before Congress that Sarbanes-Oxley has drained resources across the profession.

PCAOB Adopts Amendments to Interim Auditing Standards

The Public Company Accounting Oversight Board (PCAOB) this week adopted amendments to its interim standards that conform the text of the interim standards to the requirements of PCAOB Auditing Standard No.

PCAOB Announces Advisory Group Meeting to Discuss Future Standards

The Public Company Accounting Oversight Board announced last week that it has scheduled a Standing Advisory Group meeting for September 8 and 9 to review existing auditing standards and to discuss potential future standards. The group will meet on Wednesday, September 8, from 1:30 to 5:30 p.m. and on Thursday, September 9, from 8:30 a.m. to 3:30 p.m. The two-day meeting will be held in the Marriott at Metro Center’s ballroom located at 775 12th Street, NW, Washington, DC.

PCAOB Auditing Standard No. 3 Approved by SEC

The Public Company Accounting Oversight Board (PCAOB) announced that its Auditing Standard No. 3, Audit Documentation, has been approved by the U.S. Securities and Exchange Commission. PCAOB Auditing Standard No. 3 establishes general requirements for documentation an auditor should prepare and retain in connection with engagements conducted pursuant to the standards of the PCAOB. The standard, which supersedes SAS No.

SEC Proposes to Delay Accelerated Filing

On August 24, 2004, the U.S. Securities and Exchange Commission (SEC) approved issuance of a release proposing to temporarily postpone, for one year, the final phase-in period for acceleration of periodic report deadlines that apply to larger companies known as "accelerated filers." Under the proposal, the current deadline for accelerated filers would remain at 75 days for an additional year and at 40 days after quarter end for quarterly reports. The accelerated filing phase-in period would resume for reports filed for fiscal years ending on or after Dec.
Community News

Board Releases Report on Inspections of Big Four Accounting Firms

The Public Company Accounting Oversight Board (PCAOB) today issued reports on the Board’s 2003 limited inspections of the four largest public accounting firms in the United States.The inspections examined compliance, quality control and selected public-company audits in the national and regional practice offices of Deloitte & Touche LLP, Ernst & Young LLP, KPMG LLP and PricewaterhouseCoopers LLP.In the inspections, the Board identified significant audit and accounting issues that were missed by the firms and identified concerns about significant aspects of each firm's quality controls
Community News

Forthcoming PCAOB Report Expected to be Critical of the Big Four

The Public Company Accounting Oversight Board (PCAOB) is putting the finishing touches on a report on its first-ever inspection of the Big Four accounting firms and many expect bad news for the firms. You can review the Board's final report below. PCAOB Chairman William McDonough indicated earlier this summer that significant issues had been uncovered by inspectors looking at KPMG LLP, Deloitte & Touche LLP, PricewaterhouseCoopers and Ernst & Young LLP.

Need for SOX-Related Services Expected to Slow in 2005

With the demands of Sarbanes-Oxley regulations expected to drop off next year, analysts have downgraded shares of Robert Half International Inc., which provides temporary accounting and finance services.On news of UBS' downgrade to a "reduce" from a "neutral," Robert Half stocks fell more than 5 percent Monday, Investor's Business Daily reported. UBS reduced its price target to $21 from $30. Robert Half recently traded at $25.53.Analyst Kelly A.

PCAOB Simplifies Whistleblowing, Opens Hot Line

As the Public Company Accounting Oversight Board completes its reports on voluntary inspections of the Big Four accounting firms, the Board is finding more people willing to come forward to report corporate wrong-doing.The PCAOB, created to crack down on the accounting and auditing industry by the Sarbanes-Oxley Act of 2002, is opening a new hotline today that will make it easier for employees to report problems.With Time magazine citing several corporate whistleblowers as its “People of the Year” for 2003, reporters of corporate wrongdoing are now seen as heroes in most cases.

PCAOB Opens Regional Office in California

The Public Company Accounting Oversight Board (PCAOB) recently announced the opening of a regional office in southern California, bringing the total number of regional offices to five. The new office, located in Orange County, joins existing locations in Atlanta, Dallas, New York and San Francisco. In addition, the Board is in the process of establishing offices in the Chicago and Denver areas. The regional offices primarily support the PCAOB’s inspections program, which is headquartered in Washington, D.C.

SEC May Give Companies a Break from New Accounting Rules

The top accountant of the Securities and Exchange Commission is worried that companies are overwhelmed with the frantic pace of implementing new accounting requirements.So Donald Nicolaisen told a group of educators last week that he supports delaying some rules stemming from the 2002 Sarbanes-Oxley Act, the Washington Post reported.“During the commission's Sarbanes-Oxley rulemaking initiatives, we received many comments focusing on the increased burden that the proposed rules would place on smaller-sized public companies,” Nicolaisen told the American Accounting Association.
Community News

PCAOB Names Director of Office of Financial Analysis and Risk Assessment

The Public Company Accounting Oversight Board has named Richard D. Clark as Director of the Office of Financial Analysis and Risk Assessment. Mr. Clark, 63, comes to the PCAOB from a private forensic accounting practice where he specialized in analyzing complex financial transactions and issues. “The Board was impressed with Dick’s years of experience analyzing financial information,” said Board Chairman William J. McDonough.
Community News

Many Companies See SOX as Part of a Broader Initiative

By a margin of nearly two to one, large U.S. companies have made compliance with the Sarbanes-Oxley Act part of their regular corporate governance approach and have integrated it with other regulatory activities, according to PricewaterhouseCoopers' Management Barometer.The survey of senior executives at U.S.-based multinational companies found that:64 percent say their company's senior management and board of directors see Sarbanes-Oxley as one of many steps in a larger corporate governance initiative, while 30 percent say it is simply a goal to be achieved.
Tax

PCAOB Ponders Tax Service, Auditor Independence

Do the auditor independence rules outlined in the Sarbanes-Oxley Act of 2002 go far enough or should they be tweaked to include language governing tax advice?

U.S. Corporations Struggling to Meet First Sarbanes-Oxley Filing Deadline

Despite an extension in the deadline from June 15, 2004 to November 15, 2004, half of large U.S. companies polled are still less than 60 percent complete in meeting their Sarbanes-Oxley (SOX) Section 404 filing requirements, according to a survey conducted by ACL Services Ltd. and the Center for Continuous Auditing (CCA). The poll of 248 senior audit professionals at corporations with more than $1 billion in revenues reports considerable challenges meeting SOX Section 404 filing requirements.
Tax

PCAOB Sets Agenda for Roundtable on Auditor Independence and Tax Services

The Public Company Accounting Oversight Board (PCAOB) this week announced the participants in a July 14, 2004, roundtable meeting to discuss issues relating to tax services and auditor independence.Participants include representatives from accounting firms, public companies, investors and regulators.The meeting will be held from 10 a.m. to 4:30 p.m. in the Presidential Room at the Capital Hilton, at 1001 16th St., N.W., in Washington, D.C.The Sarbanes-Oxley Act of 2002 authorized the PCAOB to establish rules and standards for auditor independence.
Community News

PCAOB Finds 'Significant’ Issues in Review of Big 4 Audits

When it comes to the quality of work by Big Four accounting firms, "there's room for improvement," according to the chairman of the Public Company Accounting Oversight Board.PCAOB Chairman William McDonough told lawmakers Thursday that limited reviews conducted last year of corporate audits found "significant" auditing and accounting issues."We found some situations where their issuing clients, in the engagements we looked at, did not appear to follow" Generally Accepted Accounting Principles, McDonough said, according to Reuters. U.S.

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