PCAOB

More Executives Saying 'No Thanks' to CFO Job

Some executives who long dreamt of seeing the title 'Chief Financial Officer' on their business cards are starting to wonder why they ever wanted the job in the first place. The CFO job, thanks to regulatory changes and a push for greater accountability in corporate America, has changed dramatically over the last few years. More scrutiny, more pressure, a huge workload and the stress that goes along with it are causing some professionals to leave the fancy title behind, the New York Times reported.E.
Technology

Increased Scrutiny of Internal Controls on the Rise

Awareness of the Sarbanes-Oxley Act of 2002 had surged in the not-for-profit industry over the past year. According to the second annual Grant Thornton Board Governance Survey for Not-for-Profit Organizations, 83 percent of survey respondents say they are “very” or “somewhat” familiar with the act, compared to 56 percent in the 2003.The survey, which includes responses from more than 700 not-for-profit entities, also found that these organizations are not only aware of the act, but many are also taking action because of it.

SOX 404 Trends for Next Year Beginning to Emerge

As public companies strive to meet compliance deadlines for Section 404 of the Sarbanes-Oxley Act, trends related to how companies will implement an efficient and effective process beyond the initial year of compliance are beginning to emerge, according to the results of a new survey released by Ernst & Young.

SOX Compliance Costs Average $16M Per Company

Survey of corporate boards released this week by RHR International and Directorship reveals annual Sarbanes-Oxley compliance costs average $16 million--a jump of 77 percent from last year. Findings of the first annual Directorship/RHR International Board Survey also reveal that nearly half (47 percent) of companies surveyed do not have a CEO successor in place, although 61 percent expect that CEO leadership transition will go smoothly, according to the poll of almost 270 board directors at U.S. companies.
Community News

PCAOB Releases Additional Guidance for Audits of Internal Control

The Public Company Accounting Oversight Board (PCAOB) this week released the third in a series of staff questions and answers to assist in the implementation of PCAOB Auditing Standard No. 2, regarding audits of public companies' internal control over financial reporting. The questions and answers, prepared by the PCAOB’s Office of the Chief Auditor, emphasize the flexibility provided by Auditing Standard No.
Tax

OSHA Orders Whistleblower Reinstated

Whistleblower David Windhauser, a controller for the Trane Corporation, must be reinstated and paid more than $105,000 in back wages, ruled the Department of Labor's Occupational Safety and Health Administration (OSHA). OSHA referred to the whistelblowing provisions of the Sarbanes-Oxley Act of 2002 when making its ruling that Windhauser's termination after he raised questions about the company's accounting practices to his supervisors, Business & Legal Reports (BLR.com) reported.Windhauser complained to OSHA's New York regional office after he was terminated. Patricia K.
Tax

PCAOB, Advisory Group Propose Audit, Tax Standards for 2005

The Public Company Accounting Oversight Board (PCAOB) on Wednesday sought the advice of its Standing Advisory Group on a series of topics for consideration as possible auditing and related professional practice standards during the group’s meeting in Washington, DC. “We appreciate the expertise of the members of the Standing Advisory Group as we plan the Board’s standards-setting agenda for 2005,” said PCAOB Chief Auditor Douglas R. Carmichael.
Tax

Senators Press for SEC Enforcement of Whistle-blower Law

Two senators are ratcheting up pressure on the Securities and Exchange Commission to enforce a tough whistle-blower law. With a government finding that a publicly traded company retaliated against a whistle-blower, Iowa Republican Charles Grassley and Vermont Democrat Patrick Leahy asked for “aggressive enforcement” in a letter last week to SEC Chairman William H. Donaldson, the Associated Press reported. Donaldson was also asked for details of the agency's enforcement plans.
Community News

PCAOB To Hold Forum On Small-Business Auditing

The Public Company Accounting Oversight Board (PCAOB) last week announced a new initiative to bring important information concerning the PCAOB to small business communities. The Forum on Auditing in the Small Business Environment is an invitation-only program for registered accounting firms and public companies in the small business community to learn more about the work of the Board, specifically the PCAOB inspections process and the impact of new auditing standards. The first forum will be held in Costa Mesa, California, on Tuesday, November 30, and Wednesday, December 1, 2004.
Community News

SOX Takes Toll on Industry Confidence, Client Ratings of Accounting Firm Performance

The stress of meeting the requirements for corporate financial accountability is taking a toll on confidence and client ratings within the accounting industry, according to the J.D. Power and Associates 2004 Audit Firm Performance Study(SM) released today. The study, which measures audit firm performance in the wake of the Sarbanes-Oxley Act of 2002, is based on interviews with 1,007 audit committee chairs and 944 chief financial officers. The study finds a significant amount of angst among audit committee chairs and CFOs in the industry.
Tax

McDonough Predicts Some Won't Meet Reporting Deadline

Companies need to be prepared for how they will tell investors about internal control weaknesses uncovered by ongoing reviews mandated by Sarbanes-Oxley, said William McDonough, chairman of the Public Company Accounting Oversight Board (PCAOB).Investors.com reported on a speech McDonough gave last week to the Securities Industry Association. The PCAOB was created by the Sarbanes-Oxley Act of 2002, passed to reform corporate governance in the wake of numerous accounting scandals.

PCAOB Announces Standing Advisory Group Meeting

The Public Company Accounting Oversight Board announced this week that it has scheduled a Standing Advisory Group meeting for November 17 and 18 to discuss potential future auditing and related professional practice standards, as well as a proposed standards-setting agenda for 2005. The group will meet on Wednesday, November 17, from 1:30 to 5:15 p.m., and on Thursday, November 18, from 8:30 a.m. to 3:30 p.m. The meeting will be held in the Phillips Collection Ballroom at the Radisson Barceló Hotel, 2121 P St, NW, Washington, DC.

DaimlerChrysler Hit with Whistleblower Suit, SEC Investigation

A whistleblower complaint has prompted a Securities and Exchange Commission investigation of DaimlerChrysler AG, over possible violations of federal anti-bribery laws, the Associated Press reported."The investigation follows the filing of a whistleblower complaint with the U.S. Department of Labor under the Sarbanes-Oxley Act by a former DaimlerChrysler employee whose employment was terminated earlier this year," the company said in its third-quarter earnings statement.

PCAOB Adopts 2005 Budget of $152M, Proposes Subpoena Rule

Approval of 2005 Budget - The Board approved a budget of approximately $152.8 million for calendar year 2005. The budget will allow the Board to continue to fulfill its statutory mandate under the Sarbanes-Oxley Act of 2002 to oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports. The budget supports the continuation of an aggressive hiring effort in order to satisfy the PCAOB’s mandates under Title I of the Act.

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.

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