PCAOB

Revised ALLL Policy Gets Nod From PCAOB

The Public Company Accounting Oversight Board (PCAOB) gave its blessing to the latest Policy Statement on the Allowance for Loan and Lease Losses (ALLL), issued this week.The interagency policy statement on ALLL, developed by federal banking and credit union regulators, updates the 1993 statement and outlines expectations for banks and examiners in regards to the development and assessment of the ALLL estimate.“The policy statement outlines enhanced guidance on the sound management practices that are expected to be employed in the development of the allowance for loan and lease losses
A&A

SEC Proposes Risk-Based Analysis of Financial Controls

The Securities and Exchange Commission (SEC) voted unanimously on Wednesday to allow public companies subject to the requirements of Sarbanes-Oxley (SOX) to evaluate the design of only those financial controls that might carry the risk of having a material impact on financial statements.
A&A

SEC and PCAOB Still Working on Sarbanes-Oxley Changes

Christopher Cox, the Securities and Exchange Commission (SEC) Chairman, said Monday that regulators were still working on revisions to its rule requiring companies to adopt internal controls and procedures for financial reporting but said he was “confident” that the result would “improve the reliability of public company financial statements and better protect investors,” the Washington Post reports. The SEC will issue its proposed revision on December 13.
Community News

PCAOB Budget Projects Staff Increase of 39

The Public Company Accounting Oversight Board (PCAOB) submitted a 2007 budget proposal of $136.4 million, which would be an increase of $5.5 million or about a half a percent over the current budget.Advertisement
A&A

SEC, PCAOB Chairmen Differ Over SOX 404 Changes

Securities and Exchange Commission (SEC) Chairman Christopher Cox and the Public Accounting Oversight Board’s (PCAOB) Chairman Mark Olson were reported to be planning to meet, possibly as early as Sunday, to discuss differences in their approaches to revising Section 404 of the Sarbanes-Oxley Act (SOX), Reuters reports. Early in November the PCAOB sent a draft audit revision to the SEC that did not win SEC approval because it did not meet the concerns of small businesses, unnamed sources told Reuters.
Community News

PCAOB Adviser Implicated in Questionable Transaction

The former employer of a Public Company Accounting Oversight Board (PCAOB) advisor has filed an insurance claim blaming the board member for breaches of fiduciary duties regarding a real estate purchase.Advertisement

Amendments to AS2 Aim To Rethink Auditor’s Role

The Public Company Accounting Oversight Board (PCAOB) submitted a draft of changes for its Auditing Standard 2 (AS2) to the Securities and Exchange Commission (SEC) back in September. AS2 has been criticized for its conservative use by auditors, according to CFO.com.
Practice Management

PCAOB Issues Fair Value Auditing Guidance

The Public Company Accounting Oversight Board (PCAOB) on Tuesday issued staff questions and answers providing direction for auditing a company’s estimation of the fair value of stock options granted to employees pursuant to Statement of Financial Accounting Standards No. 123 (Revised), Share-Based Payment (FAS 123R).This series of questions and answers is limited to addressing auditing the fair value measurements associated with determining compensation cost.
A&A

More Restatements in 2006 for Smaller Accounting Firms - Update 1

Of the 928 companies that announced in the first half of 2006 that they would file restatements of their results for prior periods, 504 were clients of firms other than the eight largest accounting firms, according to data compiled by AuditAnalytics, a company that analyzes audit problems, the New York Times reports.
Practice Management

PCAOB Drafts Rewrites to AS2; Senior Administrators Moving On

Signs that the Public Company Accounting Oversight Board (PCAOB) is entering a new phase of its development came recently when the Board submitted a draft of changes to the Auditing Standard 2 (AS2) to the Securities and Exchange Commission (SEC) that are said to modify confusing definitions and eliminate the need for separate internal control and financial statements audits.
A&A

Summary of Smaller Firm PCAOB Inspection Deficiency Analysis

The Center for Public Company Audit Firms (CPCAF) has issued their current Smaller Firm PCAOB Inspection Deficiency Analysis. Small firms are defined as those with 100 or fewer Securities and Exchange Commission (SEC) issuer audits. This analysis did not include analysis of the Public Company Accounting Oversight Board's (PCAOB) larger firm inspection reports. The public portion of 324 PCAOB smaller firm inspection reports issued between January 21, 2005, and August 15, 2006, were identified in this analysis.

Regulators Begin Extra-Territorial SOX Inspections

The Public Company Accounting Oversight Board (PCAOB) has confirmed that more than a dozen inspections of foreign audit firms have been carried out under the U.S. Sarbanes-Oxley Act of 2002 (SOX). The London offices of Ernst & Young are among those identified by the media as subject to recent inspections.
Community News

OFHEO Head Wants Congress to Act on New Rules for Fannie and Freddie

James Lockhart, director of the Office of Federal Housing Enterprise Oversight (OFHEO), the federal watchdog for Fannie Mae and Freddie Mac, the mortgage giants, said in prepared remarks to the American Enterprise Institute that if Congress does not act now on a bill to create stronger regulations for the companies, “the enterprises and their shareholders will continue to confront uncertainty,” MarketWatch reports.
Technology

Closely Held Companies Adopting Sarbanes, Increasing Demand for Auditors

Privately owned companies, although not bound by the requirements of the Sarbanes-Oxley Act (SOX), are feeling the effects of the law in specific areas of their businesses, as well as the impact of widespread public commitment to stronger internal controls that the law has helped to create.

SEC, Justice Department Support PCAOB Constitutionality

The Securities and Exchange Commission (SEC) and the U.S.
A&A

Accounting Insight & Analysis for the Post-SOX Environment

On September 5, 2006, BNA, the largest independent publisher of nonpartisan news and information in Washington, D.C., will launch its new Accounting Policy & Practice Series, providing subscribers in the accounting, legal and financial professions with a new dimension of objective and insightful guidance into decision-making in the post-Sarbanes-Oxley (SOX) environment.Advertisement
Community News

PCAOB Auditing in the Small Business Environment Forum Heads to Boston

The Public Company Accounting Oversight Board (PCAOB) is hosting a Forum on Auditing in the Small Business Environment in Boston, Mass., on Friday, September 8.

PCAOB Issues Audit Practice Alert Regarding Options

The Public Company Accounting Oversight Board (PCAOB) on Friday announced an initiative to publish, from time to time, Audit Practice alerts issued by the Board’s staff.
Community News

NY Crackdown on Bad Accountants Addresses Long-Term Concern

New York State regulators’ new crackdown on the accounting profession addresses an issue that has been roiling in the Empire State ever since the Enron accounting scandal surfaced several years ago.The New York State Board of Regents has revised the definition of "unprofessional conduct" for CPA's licensed by the state to include disciplinary actions taken by the Securities and Exchange Commission (SEC) and its Public Company Accounting Oversight Board (PCAOB), meaning that accountants or accounting firms disciplined by either of those bodies now can be subject to censure, reprimand and t

SEC Will Issue Options-Timing Rule; Tells PCAOB to Delay Stock Options Alert

The Securities and Exchange Commission (SEC) has asked the Public Accounting Oversight Board (PCAOB) to delay issuing an alert to accounting firms related to backdating stock options, the Wall Street Journal reported late last week. The SEC wants to complete its work on its own proposed rule regarding executive compensation. SEC Chairman Christopher Cox has said that he expects their rule, which should be completed later in the summer, to address backdating issues.An SEC spokesman said that it makes sense for the SEC and PCAOB “to go out with it at the same time” . . .

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