PCAOB

Tax

PCAOB Vows to Look For Abusive Tax Shelters

The new accounting regulatory board plans to take a hard look at abusive tax shelters and a “very heavy-handed” approach with the firms that sell them.William McDonough, head of the Public Company Accounting Oversight Board (PCAOB), said in Senate testimony last week that policing tax shelters was not Congress' motive in establishing the PCAOB in the 2002 Sarbanes-Oxley Act. However, he said PCAOB staffers will look for evidence that firms have marketed abusive tax shelters during their annual inspections of major accounting firms.
Community News

'Tough Love' Approach Sought For Accounting Firms That Don’t Reform

Accounting firms should “save themselves” to restore confidence in the industry, but those that don’t clean up their practices will face tough penalties, said the head of the new accounting oversight board. William McDonough, the former Federal Reserve official who heads the Public Company Accounting Oversight Board (PCAOB), said that as a result of a wave of corporate scandals, the public “lost faith in the ability of the accounting industry to govern themselves. They should wish to rise to a new level of virtue.

PCAOB Considering Two Auditing Standards

The Public Company Accounting Oversight Board has scheduled an open meeting for 10 a.m. Wednesday, November, 12, in the Potomac Room at the St. Regis Hotel, 923 16th St., N.W., in Washington, DC. The Board is scheduled to consider whether to propose and seek comment on: A new auditing standard, and an amendment to an interim auditing standard, relating to audit documentation.

PCAOB Solicits Nominations For Advisory Group

The Public Company Accounting Oversight Board is now soliciting nominations for members of a standing advisory group that will assist the Board in carrying out its standards-setting responsibilities for auditing.The advisory group will consist of approximately 25 members with expertise in a variety of fields, including accounting, auditing, corporate finance and corporate governance, and investing in public companies.Members will be selected by the Board based on nominations, including self-nominations, received from any person or organization.

IBM Offers New Services to Help Companies Meet Federal Deadlines

Only one in 10 CFOs and financial executives surveyed by IBM Consulting Services believe their company’s internal controls comply with Section 404 of the Sarbanes-Oxley Act today — despite a compliance deadline only eight months away.The survey results, announced Wednesday, revealed that top executives from some of the largest U.S.

IFAC & International Regulators Propose Reforms to Strengthen Audit Quality

The international accountancy profession, together with international regulators, are spearheading reforms to improve the quality of standards and practices in auditing and assurance worldwide and to achieve global convergence of high quality standards. Their focus is on strengthening the international auditing and assurance standards process to bolster public confidence in the work of auditors and in the financial reporting process.

PCAOB Releases Parameters of Non-U.S. Accounting Firms

The Public Company Accounting Oversight Board today released a briefing paper that describes the broad parameters of the Board’s approach to the oversight of non-U.S. accounting firms.The briefing paper describes the Board’s plans for oversight of non-U.S. registered public accounting firms, based on cooperation with appropriate non-U.S. auditor oversight authorities.
Community News

Charles Niemeier Reappointed to PCAOB

The Securities and Exchange Commission announced earlier this week the reappointment of Charles D. Niemeier to the Public Company Accounting Oversight Board (PCAOB). The Commission unanimously selected Niemeier to serve a five-year term as a PCAOB board member upon the completion of his current one-year appointment this month.SEC Chairman William H. Donaldson said, "I am pleased that the Commission has acted to reappoint PCAOB Board Member Charles Niemeier.
Tax

Tax Shelters Once Again Under Scrutiny by Senate, PCAOB

A KPMG senior manager testified at a Senate Finance Committee hearing on Tuesday that his refusal to sign off on an audit client’s questionable tax transactions hurt his career at the Big Four firm. Michael Hamersley, a five-year KPMG employee, filed suit against the company in June and the case is pending.
Community News

PCAOB Final Registration: Pool of Public Audit Firms Shrinks by 45%

The Public Company Accounting Oversight Board has reviewed and approved registration applications from 598 public accounting firms to provide audit services to public companies.

PCAOB Reveals Plans For Regional Office Development

The Public Company Accounting Oversight Board will be setting up regional offices around the country to be closer to the "action" in pursuing its oversight responsibilities.At his testimony before the Senate Finance Committee on October 21, PCAOB Chairman William McDonough revealed plans to set up regional offices in Atlanta, Dallas and San Francisco, in addition to its main offices in New York and Washington, DC.PCAOB spokesperson Christi Harlan indicated that those regional locations were selected because of the proximity to the clusters of offices of public accounting firms that audit

PCAOB Highlights CEO Comp as Key Investor Concern

William McDonough, head of the Public Company Accounting Oversight Board, warned corporate directors that Americans are still angry about corporate scandals, and CEO compensation is at the top of their list of concerns."As corporate directors, you should think long and hard about the compensation of the executives who head the corporation you are sworn to protect," he said at a meeting of the National Association of Corporate Directors.Both McDonough and SEC Chairman William Donaldson have been speaking out against lavish pay and stock compensation packages for CEOs of public companies.
Community News

US, EU Close to Agreement on PCAOB Registration

U.S. and European Union regulators are nearing agreement over the once-controversial matter of European companies registering with the Public Company Accounting Oversight Board (PCAOB).As part of the Sarbanes-Oxley Act, all domestic and foreign firms auditing publicly held firms in the U.S. must register with the PCAOB. Domestic firms have until October 22, 2003.
Community News

PCAOB Proposes Auditing Standards For Internal Control Over Financial Reporting

On Tuesday, October 7, the Public Company Accounting Oversight Board unanimously voted to propose and issue for public comment a standard on an audit of internal control over financial reporting. The Board also unanimously voted to propose and issue for public comment a rule which clearly defines terms used in auditing to assist firms in complying with the standards.
Community News

PCAOB Adopts Final Rules For Inspections of Accounting Firms

On Tuesday, October 7, the Public Company Accounting Oversight Board adopted final rules relating to inspections of registered public accounting firms. Section 104(a) of the Sarbanes-Oxley Act directs the Board to conduct a continuing program of inspections to assess the degree to which each registered public accounting firm and its associated persons are complying with the Act, the Board's and the Commission's rules, and professional standards in connection with audits, audit reports, and related matters involving U.S. public companies.

PCAOB Adopts Rules on Investigations, Registration Withdrawal

The Public Company Accounting Oversight Board adopted two separate sets of rules this week: rules on investigations and adjudications, and a rule on the process by which a registered public accounting firm may seek to withdraw from registration. The rules will be submitted to the Securities and Exchange Commission for approval pursuant to Section 107 of the Act. The Board's proposed rules will not take effect until approved by the Commission.
Community News

PCAOB to Look at Reasons Behind Audit Firm Firings

A member of the Public Company Accounting Oversight Board (PCAOB) put corporate America on notice this week, announcing that if a company fires its auditor, the Board is going to want to know why.After the accounting scandals of recent years, the PCAOB is going to be suspicious that auditors are being fired because they are unwilling to sign off on accounting that pushes the boundaries of acceptable practice.Charles D.

PCAOB Chair Updates Congress on Progress

Public Company Accounting Oversight Board Chairman William McDonough appeared before the Senate Banking Committee for the first time on Tuesday to update the progress being made at the Board towards auditor oversight.Overall, Mr. McDonough's report was very favorable as to progress of the board, and indicated that the accounting industry has been very cooperative thus far in working with the PCAOB in its efforts to reform the profession.He praised the Committee for not merely judging the accounting profession, but also providing a mechanism through Sarbanes-Oxley to offer redemption.
Tax

PCAOB Tackles Tax Shelters

In its top to bottom review of all aspects of the auditing business, the Public Company Accounting Oversight Board (PCAOB) has turned its attention to tax shelters.Created in the wake of corporate scandals at Enron, WorldCom and others, the PCAOB is charged with reforming the auditors who oversee publicly held companies. Most of those audit firms have until October 22 to register with the PCAOB, which will guarantee an inspection by the board.To date, just 440 audit firms—half the number who audited public companies last year—have registered.
Community News

PCAOB Chief Warns Auditors of 'Grave Consequences' For Misdeeds

William McDonough, the head of the Public Company Accounting Oversight Board, issued his first public policy address this week, and his tone left no question about his approach to oversight."I expect that you, as members of a regulated profession, know what the rules are.

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