SEC

Microsoft and SEC Settle 'Cookie Jar Accounting' Case

On June 3, 2002, the Securities and Exchange Commission (SEC) announced the settlement of an administrative enforcement action against Microsoft Corporation. The case involves allegations that Microsoft used "cookie jar accounting" to smooth earnings through adjustments to reserves.Commissioner Isaac Hunt explained to Reuters, "It's a cease-and-desist order.
Technology

EDGAR Goes Real-Time with Up-to-the-Minute Filings

Securities and Exchange Commission (SEC) Chairman Harvey Pitt announced on May 30, 2002 that the Commission's Web site will now provide free, real-time access to the filings of companies registered with the SEC. In the past, EDGAR filings were delayed by at least 24 hours on the free site, while some commercial EDGAR service providers supplied up-to-the-minute filings for a fee.
A&A

SEC Talks Tough on Changes in Store for FASB

The media may have called him the "wishy-washiest watchdog since Scooby-Doo," but Securities and Exchange Commission (SEC) Chairman Harvey Pitt is talking tough about reforming accounting standards.
Community News

Court Denies KPMG's Appeal of Charges by SEC

In a decision dated May 14, 2002, a court of appeals denied KPMG's request for a reconsideration of an independence action brought against the firm by the Securities and Exchange Commission (SEC). The court's decision to back the SEC was especially significant because KPMG's position was supported by the American Institute of CPAs (AICPA). The SEC charged that KPMG was not independent when it audited a client who purchased turnaround services from a KPMG affiliate in exchange for contingent fees.

Europe Reforms Audits, Urges U.S. Cooperation

On May 16, 2002, the European Union (EU) issued long-awaited guidelines on auditor independence in an effort to avoid an Enron-type incident. Among other things, the guidelines recommend that accounting firms rotate audit partners after seven years with the same client and partners wait two years before joining a company they have audited. The recommendations are not binding. Each country is free to adopt stricter requirements. AccountingWEB's sister site in the U.K.

SEC Chairman Harvey Pitt Connects at Investor Summit

Securities and Exchange Commission (SEC) Chairman Harvey Pitt defended his integrity and scored points with investors at the Commission's first Webcast Investor Summit on May 10, 2002. Most questions asked at the summit were well-focused on the issues of the times, including Web-based financial reporting. Some were answered by Commissioners Cynthia Glassman and Isaac Hunt or Chief Accountant Robert Herdman.

SEC's EDGAR Goes Global to Meet Investors' Needs

Starting November 4, 2002, the Securities and Exchange Commission will take its EDGAR (Electronic Data Gathering Analysis and Retrieval) system global by requiring non-US as well as US issuers of securities to file certain documents electronically.
Community News

Andersen Lawyers Request Access to Duncan Notes

Lawyers for Big Five firm Arthur Andersen LLP on Wednesday requested access to notes of conversations with former partner David Duncan who headed up Andersen's Enron audit team. Mr. Duncan pleaded guilty to obstruction of justice on April 9. As part of his plea agreement, Mr. Duncan agreed to cooperate with the Department of Justice in its investigation and prosecution of Andersen. Mr.

SEC Hears of Alternatives to Faster Filings

The deadline for comment letters on its proposed rules for faster filings and Web postings doesn't come due until May 23, 2002, but already the Securities and Exchange Commission (SEC) is hearing of alternatives that might be better for both companies and investors. One particularly interesting suggestion came from Jack Ciesielski, owner of R.G.
Community News

KPMG Puts Its Meeting with the SEC in Perspective

Members of Congress asked the chairman of the Securities and Exchange Commission (SEC) and the CEO of KPMG LLP to provide accounts of a meeting last week that triggered ethics concerns. The concerns seem to have stemmed from an unfortunate misperception that got a lot of play in the media.
Community News

PwC Consulting Files SEC Registration for IPO

Big Five firm PricewaterhouseCoopers has announced that its consulting arm, PwC Consulting, has filed a registration statement with the Securities and Exchange Commission (SEC) for an initial public offering of Class A common shares.

SEC Proposes New Rules On 'Critical' Accounting

In its first webcast meeting, the Securities & Exchange Commission (SEC) approved the issuance for comment of rule proposals on disclosures about "critical" accounting estimates.The SEC first suggested the "critical" accounting proposal in a release on cautionary advice issued in December 2001, but reviews of corporate disclosures indicate uneven compliance.

SEC Announces Investor's Summit

Hoping to restore investor confidence, the Securities and Exchange Commission (SEC) has scheduled its first-ever Investor Summit to be held simultaneously live and in an Internet Webcast on Friday, May 10. The live summit will be held in Washington, D.C. at the SEC headquarters at 450 Fifth Street, N.W. There is no charge to attend the summit, but seating is limited.The simultaneous Webcast may be attended by going to the SEC Web site at www.sec.gov.

President Bush Picks Two More SEC Commissioners

President George W. Bush has announced that he intends to nominate Harvey Goldschmid and Roel Campos to the open positions on the Securities and Exchange Commission (SEC). Both are Democrats. By law, the five-member SEC can have no more than three commissioners from one party. Currently, three seats are filled by Republicans -- Chairman Harvey Pitt and Commissioners Cynthia Glassman and Paul Atkins. Mr.

SEC Pioneers Analytical Software to Spot Future Enrons

Faced with a limited budget and committed to more frequent reviews of filings by large registrants, the Securities and Exchange Commission (SEC) is developing new analytical software to help identify the reports most likely to contain accounting irregularities or other potential problems.

SEC Called Into NY State Flap Over Analyst Reforms

According to the Wall Street Journal, officials from the Securities and Exchange Commission (SEC) joined in talks this week to discuss analyst reforms. The central issue regards alleged conflicts-of-interest that can affect the judgment of securities analysts employed by giant financial firms such as Merrill Lynch. If the SEC decides to take an active role in the resolution of this issue, it could lead to an industry-wide framework to reform how Wall Street research departments rate stock for investors.

SEC Releases Proposal to Modernize Reporting Rules

On April 11, 2002, the Securities and Exchange Commission (SEC) approved the release for public comment of proposed rules that would modernize and improve the timeliness of its system of corporate disclosures. The proposed changes recognize the importance of the Internet and move companies closer to real-time reporting. Some see these changes as long overdue.
Community News

Xerox to Pay Record Financial Fraud Penalty, Investigation Turns to KPMG

The SEC has informed representatives of KPMG, and executives of Xerox, about the possibility of leveling charges against them as part of an ongoing investigation into accounting irregularities at Xerox.In a civil complaint filed against Xerox today, the SEC meticulously outlines details of an alleged fraud, accusing Xerox of "relying on what it called 'one-time actions,' 'one-offs,' 'accounting opportunities' and 'accounting tricks'" resulting in an acceleration of the recognition of copier-equipment r
A&A

Panel Wants SEC to Lead Accounting into Internet Age

On April 4, 2002, the Securities and Exchange Commission (SEC) hosted a roundtable in Chicago to find out how best to improve financial disclosures. The participants represented key occupations and associations that typically take a back seat in the setting of accounting standards. Their nearly unanimous conclusion: the SEC should take the lead in bringing accounting and financial disclosures into the Internet Age. How to Overcome ObstaclesThe panelists also gave the SEC some advice about how to overcome obstacles to needed reforms:Priority no.
Community News

SEC Seen as Key to Success in DOJ-Andersen Talks

While Andersen employees were still trying to find their way through the political maze, former Securities & Exchange Commission (SEC) Chairman David Ruder took center stage on a televised Lou Dobbs show to explain how the maze got created and how the firm can get through it. A Sound Litigation Strategy Gone AwryAppearing on the April 2, 2002 Moneyline show, Mr.

Pages


Already a member? log in here.