PCAOB

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.

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.

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