Dena's Feed
Jul 13, 2012

SEC staff pans direct adoption of global accounting

NEW YORK, July 13 (Reuters) – A full-scale adoption of
international accounting standards by the United States has
little support and few investors or companies are prepared for
it, the U.S. Securities and Exchange Commission said on Friday.

In a long-awaited staff report, the SEC said a wholesale
switch to international standards would strain the resources of
U.S. companies and a staged transition has more support.

Jul 12, 2012

My word! U.S. accountants suggest brevity a virtue

NEW YORK, July 12 (Reuters) – Keep it short.

So said the professional group that sets U.S. accounting
standards in a statement on Thursday about the financial reports
companies issue each year.

The Financial Accounting Standards Board is seeking comment
through Nov. 16 on ways to make financial reports more relevant
and useful.

Jul 6, 2012
via Tax Break

ABA members argue legality of audit firm rotation proposal

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The watchdog for U.S. auditors has been debating some of the toughest reforms in many auditors’ memories this year. Now some legal experts are questioning whether it has the authority to impose its most controversial idea – making companies switch, or rotate, audit firms after a set number of years.

In a letter to the Public Company Accounting Oversight Board, members of the American Bar Association joined a long line of critics of rotation. The lawyers cited the 2002 Sarbanes-Oxley act, which created the PCAOB, and questioned where it gave the board any authority to mandate rotation.

Jun 28, 2012

Switching auditors not enough to end fraud-experts

By Dena Aubin

(Reuters) – Making U.S. companies switch or rotate auditors every few years would not end audit failures, and regulators should consider additional measures to protect investors, former securities regulators and legal experts said on Thursday.

The auditing profession has become a comfortable oligopoly and its basic product has become suspect, said Harold Williams, former chairman of the U.S. Securities and Exchange Commission, at a forum in San Francisco.

Jun 28, 2012

Rotation not enough to improve audits – experts

June 28 (Reuters) – Making U.S. companies switch or rotate
auditors every few years would not end audit failures, and
regulators should consider additional measures to protect
investors, former securities regulators and legal experts said
on Thursday.

The auditing profession has become a comfortable oligopoly
and its basic product has become suspect, said Harold Williams,
former chairman of the U.S. Securities and Exchange Commission,
at a forum in San Francisco.

Jun 19, 2012

SEC seeks Big 4 audit papers from China -source

NEW YORK (Reuters) – The Chinese arms of all of the Big Four audit firms have been asked by U.S. regulators to turn over documents related to audits of China-based companies that are listed in the United States, a person familiar with the matter said on Tuesday.

The formal requests made by the U.S. Securities and Exchange Commission raise the stakes in a standoff between U.S. authorities, the companies and Chinese officials over access to the auditors’ work papers.

Jun 13, 2012

BDO to pay $50 million in tax shelter case

NEW YORK, June 13 (Reuters) – Accounting firm BDO USA has
agreed to pay $50 million to settle charges of selling tax
shelters that generated $6.5 billion in phony tax losses for
wealthy clients, U.S. prosecutors said on Wednesday.

The penalty is part of a wide-ranging, nearly decade-old
government case against illegal tax shelters. Big Four
accounting firm KPMG narrowly avoided an indictment in
2005 over its sale of tax shelters and was fined $456 million.

May 29, 2012
via Tax Break

FASB under political heat from Congress over lease accounting

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U.S. and international accounting rule-makers have been struggling for years to come up with a common standard for lease accounting. Now they have a new hurdle: U.S. lawmakers.

Sixty members of Congress, led by representatives Brad Sherman, a Democrat, and Republican John Campbell, have written to the U.S. Financial Accounting Standards Board warning of dire economic fallout from a plan to have companies put leases on their balance sheets.

May 8, 2012

U.S. auditor watchdog reports progress on China deal

NEW YORK (Reuters) – The main U.S. auditor watchdog said it is close to an agreement that will allow it to observe audit inspections in China, a first step toward doing joint inspections there.

The breakthrough in lengthy negotiations between the United States and China on joint inspections came last week during meetings in Beijing, said Jim Doty, chairman of the U.S. Public Company Accounting Oversight Board (PCAOB), which oversees the audit industry, in a telephone interview.

May 8, 2012

Auditor watchdog reports progress on China deal

NEW YORK (Reuters) – The main U.S. auditor watchdog said it is close to an agreement that will allow it to observe audit inspections in China, a first step toward doing joint inspections there.

The breakthrough in lengthy negotiations between the United States and China on joint inspections came last week during meetings in Beijing, said Jim Doty, chairman of the U.S. Public Company Accounting Oversight Board (PCAOB), which oversees the audit industry, in a telephone interview.