PCAOB

PCAOB Auditing Standard No. 1 Effective May 24

The Public Company Accounting Oversight Board announced that its Auditing Standard No. 1, References in Auditors' Reports to the Standards of the PCAOB, has been approved by the U.S. Securities and Exchange Commission. PCAOB Auditing Standard No. 1 requires that auditors' reports on audits and other engagements relating to public companies and other issuers include a reference that the engagement was performed in accordance with the standards of the PCAOB. This replaces the previous reference to generally accepted auditing standards.

GAO Recommends Twelve Actions For Exchange Listing Standards

Investors need timely and ongoing information on the listing status of issuers for use in making investment decisions.
Community News

Arizona Firm Fails PCAOB Inspection

The Public Company Accounting Oversight Board (PCAOB), created by the Sarbanes-Oxley Act of 2002, has rejected an Arizona audit firm’s application to audit publicly traded companies, the Washington Post reported.As part of its charge to clean up the accounting industry after a spate of scandals rocked the profession, the PCAOB conducts regular inspections of firms that audit public companies. James C.
Community News

PCAOB Begins Inspections, Partner Pay to be Checked

The Public Company Accounting Oversight Board has begun inspecting America’s top eight accounting firms and its chairman put partners on notice that their compensation packages will be scrutinized.Speaking before the a Practising Law Institute conference in Washington this week, PCAOB Chairman William McDonough said the board has begun work on the inspections of the top eight firms. The PCAOB has about 80 experienced auditors working on the inspections, which he said will include partner compensation.
Community News

Achieving Corporate Ethics Standards a Gradual, Deliberate Process Within U.S. Companies

Newly released research from Deloitte & Touche LLP, finds that while most companies have taken the initial steps toward establishing a code of ethics, a limited number are actively monitoring adherence to the programs. In a detailed questionnaire sent to 5,000 directors of the top 4,000 publicly traded companies, Deloitte determined that 83 percent of the firms responding have established formal codes of ethics and conduct, but 25 percent are not actively monitoring compliance.Further slippage can be seen in the allocation of resources to ethics activities.

Meeting New Whistleblower Reporting Requirements; Complying With Section 301 of the SOX

The latest edition of The Bulletin, Protiviti Inc.'s corporate governance and risk management newsletter, examines strategies for complying with Section 301 of the Sarbanes-Oxley Act, often referred to as the "whistleblower provision." Protiviti is a leading provider of business and technology risk consulting and internal audit services.Section 301 of Sarbanes-Oxley calls for companies to have systems in place for receiving and handling confidential reports of questionable accounting or auditing practices.

PCAOB Names Advisory Group

The Public Company Accounting Oversight Board today announced the formation of a Standing Advisory Group to assist the Board in carrying out its standards-setting responsibilities. “The Standing Advisory Group will bring a multi-disciplined perspective to the Board’s process of setting auditing standards,” said Board Chairman William J. McDonough.

Tough Rules for Private Entities Could Burden Small CPA Firms

CPAs at small firms are worried about proposals to extend the tough rules of the Sarbanes-Oxley Act to private and nonprofit entities.A task force of the AICPA is studying the matter, and more than 20 states are considering more stringent requirements.Allan Koltin, president of PDI Global Inc., said that small CPA firms "are incensed that they may have to hold the bag because of mistakes the biggest firms made with such audits as Enron, WorldCom and Adelphia." "The small guy is going to suffer greatly for the sins of the big guys," Koltin told Bloomberg columnist Lee Berton.

SEC Publishes Notice of PCAOB Standard on Wording in Audit Reports

The Securities and Exchange Commission this week published a notice soliciting public comments on Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 1, entitled "References in Auditors' Reports to the Standards of the Public Company Accounting Oversight Board." If approved by the Commission, Auditing Standard No.
Community News

PCAOB Names Director of Investigations and Enforcement

The Public Company Accounting Oversight Board announced this week that Claudius B. Modesti will join the Board's staff as its Director of Investigations and Enforcement, effective May 3, 2004. Mr. Modesti, 39, currently is an Assistant United States Attorney for the United States Attorney's office for the Eastern District of Virginia where he has led the investigation and prosecution of white-collar crimes with an emphasis on securities fraud. He was also appointed corporate fraud coordinator for the office.

PCAOB Creates Office of Internal Oversight & Performance Assurance

The Public Company Accounting Oversight Board announced this week the creation of the Office of Internal Oversight and Performance Assurance. The staff of the office will perform internal reviews of the programs and operations of the PCAOB to help ensure their efficiency, integrity and effectiveness.The Board has named Peter Schleck, a former senior advisor to the inspector general of the U.S. Department of Energy, as director of the office and Fred Doggett as deputy director.Mr.
Community News

EU Proposes New Accounting/Auditing Reform Package in Wake of Scandals

In the United States, it’s Enron. In Europe it’s Ahold and Parmalat. The company names are now synonymous with scandal and all three have spurred wide-scale reforms designed to keep it from happening again.Yesterday, the European Commission proposed stricter auditing standards in the fight against the corporate scandals that are now affecting Europe, after blowing up here in 2001 and 2002. The U.S. took steps to reign in the accounting profession in 2002 with passage of the Sarbanes-Oxley Act, which among other things created the Public Company Accounting Oversight Board.The U.S.

Board Approves Internal Control Rule, Confirms Registration Deadline for Non-U.S. Firms

The Public Company Accounting Oversight Board today approved an auditing standard for audits of internal control over financial reporting and proposed amendments to the Board’s existing interim auditing standards to conform them to the new standard. The Board also voted to change the registration deadline for non-U.S. accounting firms from the previous deadline of April 19 to July 19, 2004.
Community News

PCAOB to Set New Registration Deadline for Non-U.S. Firms

The Public Company Accounting Oversight Board will consider a final vote on changing the registration deadline for non-U.S. accounting firms at the open meeting scheduled for 9 a.m. Tuesday, March 9. At the same meeting, the Board will vote on an auditing standard for audits of internal control over financial reporting, as well as two other matters.As previously announced, the meeting will be held in the East Room of the Mayflower Hotel, 1127 Connecticut Avenue N.W., in Washington, DC.
Practice Management

PCAOB Checking Criminal Past of Auditors, Staff

The Public Company Accounting Oversight Board (PCAOB) is digging deep into the lives of those who audit public companies, going so far as to require disclosure of criminal background from staff, some of whom don’t even work on audits.KPMG, Deloitte and Ernst & Young told AccountancyAge.com that information about their employees’ criminal backgrounds has been requested as part of ongoing inspections the Board is conducting of the Big Four public accounting firms.
Community News

SEC Extends Sarbanes-Oxley Section 404 Compliance Dates

On Wednesday, the Securities and Exchange Commission announced that it has extended the deadline for compliance with section 404 of the Sarbanes-Oxley Act of 2002. Compliance was initially set to be reflected in annual reports ending on or after June 15, 2004, but has been pushed to November 15 2004 for "accelerated filers." According to the SEC press release, under the new compliance schedule, a company that is an "accelerated filer" as defined in Exchange Act Rule 12b-2 (generally, a U.S.
Community News

PCAOB to Consider Adopting Standard for Audits of Internal Control Over Financial Reporting

The Public Company Accounting Oversight Board has scheduled an open meeting for Tuesday, March 9, to consider adopting an auditing standard for internal control over financial reporting. The meeting will be held at 9 a.m. in the East Room of the Mayflower Hotel, 1127 Connecticut Avenue N.W., in Washington, DC.

PCAOB Chair Warns of CEO Pay Controls

Lavish compensation packages for top executives may be a thing of the past, as the head of the new accounting watchdog group warned business leaders that government may intervene if pay doesn’t come down."If the anger of the American people continues and business leaders do not wake up soon, I predict that there will be legislation," William McDonough, chairman of the Public Company Accounting Oversight Board (PCAOB), said Tuesday.McDonough told a gathering at the Economic Club of Chicago that a company's compensation committee should review the appropriate level of CEO pay, Reuters re

Section 404 Could Cost Big Companies $4.6 Million or More

Total costs of first-year compliance with Section 404 of the Sarbanes-Oxley Act could exceed $4.6 million for each of the largest U.S. companies, according to a survey of 321 companies by Financial Executives International (FEI). The added costs are driven by a projected investment of 35,000 hours of internal manpower, $1.3 million in spending on external consulting and software, and additional audit fees of $1.5 million (a jump of 35 percent). FEI is the leading professional organization serving chief financial officers (CFOs) and other senior financial executives.
Community News

AICPA Launches Center For Public Company Audit Firms

The SEC Practice Section is now The Center for Public Company Audit Firms.  As a voluntary membership center, it will support member firms that audit or are interested in auditing public companies with education, communication, representation and other means. Members can use the Center as a resource and sounding board for interpreting requirements and instituting required changes from the PCAOB.

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