Dena's Feed
Mar 22, 2012

Top watchdog, U.S. Chamber clash on auditor rotation

WASHINGTON, March 22 (Reuters) – In the buttoned-down world
of corporate auditing, sharp words are rarely heard, but the
industry’s chief U.S. regulator on Thursday blasted the U.S.
Chamber of Commerce in public.

At a forum on whether corporations should be required by
regulation to switch auditors every few years, Public Company
Accounting Oversight Board Chairman James Doty said the chamber
should choose its words more carefully.

Mar 21, 2012

US audit watchdog: term limit debate likely to ’13

WASHINGTON, March 21 (Reuters) – The U.S. watchdog for the
auditing industry said on Wednesday that a debate over possibly
forcing corporations to change auditors every few years would
stretch at least into 2013.

No potential rule proposal on term limits for auditors will
be ready this year, the Public Company Accounting Oversight
Board (PCAOB) said, as critics and supporters including some
ex-regulators descended on Washington this week to weigh in on
the issue.

Mar 21, 2012

Volcker backs contentious auditor rotation idea

WASHINGTON, March 21 (Reuters) – Former Federal Reserve
Chairman Paul Volcker backed a controversial proposal to impose
term-limits for audit firms on Wednesday, saying it would serve
as “a powerful incentive to maintain professional discipline.”

“It does seem to me that regular audits should not become a
sort of long-term annuity for the accounting firm paid for by
the company being audited, rather than being responsive … to
the investing public,” Volcker said at a roundtable convened in
Washington by the Public Company Accounting Oversight Board.

Mar 13, 2012

Insight: Big 4 auditors spend more than ever on U.S. lobbying

By David Ingram and Dena Aubin

(Reuters) – The world’s largest accounting and auditing firms, known as the Big Four, have been pumping more money than ever before into U.S. lobbying and political campaigns as they confront new challenges from their regulator and Congress.

Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers last year spent a combined $9.4 million on in-house and outside lobbyists, according to a Reuters analysis of congressional disclosure reports.

Mar 8, 2012

Ernst & Young tightropes between audit, advocacy

WASHINGTON (Reuters) – Corporate audit giant Ernst & Young <ERNY.UL} operates a lobbying firm in Washington, D.C., that has been hired in recent years by several corporations that were at the same time E&Y audit clients, prompting two senior U.S. lawmakers to demand closer regulatory scrutiny.

Amgen Inc (AMGN.O: Quote, Profile, Research), CVS Caremark Corp (CVS.N: Quote, Profile, Research) and Verizon Communications Inc (VZ.N: Quote, Profile, Research) have ongoing lobbying contracts with Washington Council Ernst & Young, an E&Y unit, while also using the audit firm to review the corporations’ books, according to documents reviewed by Reuters.

Mar 8, 2012

Exclusive: Ernst & Young tightropes between audit, advocacy

WASHINGTON (Reuters) – Corporate audit giant Ernst & Young <ERNY.UL} operates a lobbying firm in Washington, D.C., that has been hired in recent years by several corporations that were at the same time E&Y audit clients, prompting two senior lawmakers to demand closer regulatory scrutiny.

Amgen Inc (AMGN.O: Quote, Profile, Research, Stock Buzz), CVS Caremark Corp (CVS.N: Quote, Profile, Research, Stock Buzz) and Verizon Communications Inc (VZ.N: Quote, Profile, Research, Stock Buzz) have ongoing lobbying contracts with Washington Council Ernst & Young, an E&Y unit, while also using the audit firm to review the corporations’ books, according to documents reviewed by Reuters.

Mar 7, 2012

U.S. watchdog extends auditor rotation debate

March 7 (Reuters) – In an unusual move, a U.S. audit
industry watchdog is giving the public more time to weigh in on
a proposal to limit how many years an audit firm may work for
the same company, an idea meant to bolster the independence of
auditors from their clients.

After being inundated with hundreds of letters opposing the
idea, the Public Company Accounting Oversight Board said on
Wednesday that the comment period would extend to April 22. It
had ended on Dec. 14.

Feb 29, 2012
via Tax Break

Canada warns on Chinese audit problems

Photo

Downtown Shanghai in haze. REUTERS/Carlos Barria

Having stirred up controversy in the United States, audit practices at China-based companies now are testing the patience of Canadian regulators.

In a special report, Canada’s audit regulator has come down hard on the quality of audits of Canadian-listed companies with operations in China, while voicing frustration at problems in getting documents.

Feb 28, 2012

US watchdog–auditors should review exec pay deals

Feb 28 (Reuters) – Auditors of U.S. companies would
have to look harder at executive pay and at accounting maneuvers
used to dress up financial results under a revised standard
proposed on Tuesday by the watchdog for the audit industry.

The proposal from the Public Company Accounting Oversight
Board would require auditors to read compensation contracts and
look for any incentives that might encourage executives to
inflate earnings.

Feb 17, 2012

Union pushing U.S. companies to reveal auditor ties

By Dena Aubin

(Reuters) – The $40 billion United Brotherhood of Carpenters pension fund, a long-time investor rights activist, is asking more than a dozen U.S. companies to start disclosing how long they have had the same outside auditor.

The push comes after the pension fund failed late last year in efforts to allow shareholders to vote on requiring companies to rotate or switch audit firms every seven years.