PCAOB

A&A

AICPA National Conference on Current SEC & PCAOB Developments

The American Institute of Certified Public Accountants (AICPA) is holding its 33rd annual National Conference on Current Securities and Exchange (SEC) and Public Company Accounting Oversight Board (PCAOB) Developments this week. The conference is being held at the Marriott Wardman Park located at 2660 Woodley Road, NW, Washington, DC. The conference will conclude Wednesday, December 7, 2005. The AICPA’s new Chair, Leslie Murphy, opened the conference. Murphy said, “Reliable and transparent financial reporting is fundamental to the well-being of our capital markets.

Challenges of Section 404 Compliance

Compliance with Section 404 of the Sarbanes-Oxley Act (SOX) is required in 2006. A report by the Public Company Accounting Oversight Board (PCAOB) states that both accounting firms and the public companies they audit will face “enormous challenges” this year as reported in CFO.com. This section of SOX requires that companies document their internal controls. “It is clear to us that the internal control assessment and audit process has the potential to significantly improve the quality and reliability of financial reporting.

2006 PCAOB Budget Approved

The Public Company Accounting Oversight Board (PCAOB) has approved its 2006 budget of $128 million. The accounting industry regulatory agency will use a $19 million excess from a 2005 budget to reduce the 2006 accounting support fee paid by publicly traded companies according to Reuters. Accounting support fee assessments of $109.3 million are projected for 2006 while $136.1 million in fees were assessed in 2005 according to the Compliance Reporter. The approved budget has been passed onto the Securities and Exchange Commission (SEC) for final approval according to Reuters.
Community News

PCAOB Faults Company Audits & Takes Disciplinary Action

The Public Company Accounting Oversight Board (PCAOB) has issued an order revoking the registration of a Los Angeles accounting firm after finding serious faults in past audits. The sole shareholder was also barred “from being an associated person of a registered public accounting firm,” according to Yahoo Asia News. The registration of another firm and its principal shareholder was also revoked.The PCAOB found that the accounting firm Kenny H. Lee CPA Group Inc. did not conform to PCAOB rules and audit standards in two audits for wireless phones maker Axesstel Inc.
Community News

PCAOB Finds Failures in Deloitte's Audit Work

The Public Accounting Standards Board (PCAOB) issued its report on Thursday on its inspections from May to November 2004 of past audits performed by Deloitte & Touche. The report cited “audit deficiencies” including failure to identify or address accounting errors, according to Reuters.

SEC Looking to Streamline Auditor-Independence Rules

The Securities and Exchange Commission (SEC) is looking into simplifying its auditor-independence rules without weakening them.Advertisement
Community News

Report Exposes Errors Found in KPMG Audits

An annual report released by the Public Company Accounting Oversight Board (PCAOB) highlights errors found in a sampling of KPMG’s nearly 1,900 public audits performed between June and October 2004.
Community News

PCAOB Chairman McDonough To Resign

William J. McDonough, Chairman of the Public Company Accounting Oversight Board (PCAOB) on Friday announce he will resign his position on November 30 or earlier, if his successor is in place. McDonough’s departure, along with that of Securities and Exchange Commission (SEC) Chief Accountant Donaldson, leaves SEC Chairman Cox with two major personnel decisions in as many months.“I came to the PCAOB in June 2003 to help it fulfill the great responsibilities assigned to it by the Sarbanes-Oxley Act to protect investors in U.S.
Community News

Marcum & Kliegman Achieves Largest Net Revenue Audited Gain

Marcum & Kliegman has achieved the largest net revenue audited gain for the first half of 2005 among non-national accounting firms, according to the Public Accounting Report.
Tax

Industry Concerned as PCAOB Adopts Ethics/Independence Rules

The Public Company Accounting Oversight Board adopted certain ethics and independence rules concerning tax services, contingent fees and related standards on Tuesday, July 26, 2005. Auditing Standard No. 4, which establishes requirements and provides direction on reporting whether previously reported material weakness continues to exist, was also adopted.The rules adopted Tuesday identify three circumstances when providing tax services impairs an auditor’s independence.
Tax

Deloitte’s Navistar Audit Being Investigated

Deloitte & Touche LLP is being investigated by the Public Company Accounting Oversight Board (PCAOB) for auditing discrepancies in their 2003 audit of Navistar Financial Corporation. The two-page order, issued in May, was inadvertently disclosed by the Securities and Exchange Commission (SEC) which oversees the PCAOB. Navistar Financial is a unit of Navistar International Corporation. “The order was misdirected to the public file,” said SEC spokesman John Heine in a statement to Bloomberg News.
A&A

Mark Your Calendar: Auditing in a Small Business Environment

The Public Company Accounting Oversight Board (PCAOB) is bringing the Forum on Auditing in the Small Business Environment to Orlando, Florida on August 4 and 5, 2005. The two-day program, hosted by Board Member Kayla J.

Lunch Buffett

How much do you spend on lunch? Even if you spend $20 a day, over the course of a year you will only spend a fraction of what one person will pay for lunch with Warren Buffett. The lucky luncher will not be announced until June 30, but already bids for the privilege of sharing a meal with the “Oracle of Omaha” and up to seven of your friends, have exceeded $250,100.The date, time and place of the lunch will be determined after the winner is announced but choices have been limited to eateries in Omaha, Nebraska or New York City.
Technology

PCAOB Releases XBRL Attest Engagement Guidance

The Public Company Accounting Oversight Board (PCAOB) on May 25, 2005 released staff questions and answers related to attest engagements regarding eXtensible Business Reporting Language (XBRL) data furnished under the Securities and Exchange Commission’s (SEC) XBRL Voluntary Financial Reporting Program on the EDGAR System.The questions and answers provide guidance for auditors engaged in reporting on whether the XBRL data accurately reflects the corresponding information in the official EDGAR filings.
Tax

Recruiting Accounting Grads for Enforcement

Accounting is a hot profession this year and not just in the private for-profit sector.

PCAOB Takes First Disciplinary Action

In its first disciplinary action, the Public Company Accounting Oversight Board (PCAOB) on Tuesday revoked the registration of a public accounting firm, barred the managing partner of the firm from association with any registered accounting firm and censured two former partners of the firm. New York accounting firm Goldstein and Morris CPAs, P.C. was notified in September 2004 that the firm would be inspected by the PCAOB in November 2004. The Board found that after managing partner Edward B. Morris and two partners Alan J. Goldberger and William A.

PCAOB & SEC Issue Internal Controls Auditing Guidance

The Public Company Accounting Oversight Board (PCAOB) issued additional guidance on the implementation of Auditing Standard No. 2 (AS No. 2) on Monday, May 16, 2005. The new guidance represents the PCAOB’s response to concerns raised during the Roundtable on Implementation of Internal Control Reporting Provisions held on April 13, 2005 and consists of both a Board Policy Statement and a series of staff questions and answers. Both focus on the scope of internal control audits and how much internal control testing is required.

PCAOB Cautions Against Over Auditing

At the same time the Public Company Accounting Oversight Board (PCAOB) is warning auditors not to overdo internal controls testing, the government is revamping portions of the law that required the testing in the first place.PCAOB Chairman William McDonough told auditors to expect a “severe conversation” if the board thinks they are gouging clients to run up fees, CFO.com reported.McDonough's comments came as part of a roundtable discussion held by the Securities and Exchange Commission.

Accounting Oversight Boards Proposes Flexible Reporting Option

The Public Company Accounting Oversight Board (PCAOB) voted unanimously on Thursday to propose a measure to give corporations and auditors flexibility in reporting when material weaknesses in their internal financial control have been corrected. The PCAOB will vote again at the conclusion of a 45-day comment period.

Accounting Oversight Board to Meet Today on Internal Controls

The Public Company Accounting Oversight Board (PCAOB) is scheduled to meet at 10 AM Eastern Standard Time to consider an auditing standard for reporting on companies that correct material weaknesses in internal controls over financial reporting.Section 404 of the Sarbanes-OxleyAct of 2002 Requires auditors to report on companies’ internal control over financial reporting.

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