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May 7, 2013

Audit watchdog wants more insider business deal scrutiny

By Dena Aubin

(Reuters) – Corporate auditors would be required to look more closely at insider business deals, like those used in many Chinese company frauds, under a rule the audit regulator proposed on Tuesday.

The Public Company Accounting Oversight Board’s rule takes aim at so-called “related party transactions,” or deals between a company and corporate insiders. These kinds of transactions have played a role in many accounting frauds.

May 7, 2013

U.S. audit watchdog wants more insider business deal scrutiny

May 7 (Reuters) – Corporate auditors would be required to
look more closely at insider business deals, like those used in
many Chinese company frauds, under a rule the U.S. audit
regulator proposed on Tuesday.

The Public Company Accounting Oversight Board’s rule takes
aim at so-called “related party transactions,” or deals between
a company and corporate insiders. These kinds of transactions
have played a role in many accounting frauds.

May 2, 2013

Lease accounting fight tests resolve of global standard setters

NEW YORK/LONDON, May 2 (Reuters) – Corporations may have to
shoulder trillions of dollars of new balance-sheet liabilities
under an accounting change for leases that is meeting stiff
resistance from businesses in a test of international accounting
standard-setters’ resolve.

Already pared back once to reduce its impact on real estate
leasing, a proposed new international lease accounting standard,
under development for years, will reach a turning point in May
when standard setters unveil a detailed draft rule.

Apr 26, 2013

U.S. SEC turning to technology to spot accounting abuses

NEW YORK, April 26 (Reuters) – The top U.S. securities
regulator will ramp up its use of technology to analyze public
securities filings for potential accounting abuses, one of its
enforcement heads said on Friday.

George Canellos, who was named co-director of the U.S.
Securities and Exchange Commission’s enforcement division on
Monday, said the commission will look at publicly traded
companies for instances of “earnings management” – when firms
take advantage of gray areas in accounting rules to make
earnings look better than they really are.

Apr 23, 2013

New chairman of U.S. accounting standards body named

By Dena Aubin

(Reuters) – An insider known as a calming force was chosen on Tuesday to be the new chief steward of U.S. corporate accounting standards at a challenging time for those who keep corporate America’s books.

Russell Golden, 42, was named chairman of the seven-member U.S. Financial Accounting Standards Board (FASB) by its parent organization, the Financial Accounting Foundation.

Apr 15, 2013

Is making U.S. banks foresee trouble more trouble than it’s worth?

NEW YORK, April 15 (Reuters) – Forcing banks to anticipate
trouble in their loan portfolios by reserving more money on
their balance sheets for potential loan losses seems like a
no-brainer, especially after the 2007-2008 credit crisis that
shook world economies.

So why is the U.S. Financial Accounting Standards Board
(FASB) meeting criticism over a proposal to do just that?

Mar 21, 2013

Analysis: Knives out for auditors as class actions go global

NEW YORK (Reuters) – Class actions against the world’s largest corporate auditing firms are spreading globally as governments bolster investor protection laws in countries where the Big Four firms have previously not faced substantial legal risks.

Even as class action lawsuits dwindle in the United States due to court rulings and legislation, the number of countries allowing these kinds of suits has grown to more than 20, including recent additions Italy, Poland and Mexico.

Mar 21, 2013

Knives out for auditors as class actions go global

NEW YORK, March 21 (Reuters) – Class actions against the
world’s largest corporate auditing firms are spreading globally
as governments bolster investor protection laws in countries
where the Big Four firms have previously not faced substantial
legal risks.

Even as class action lawsuits dwindle in the United States
due to court rulings and legislation, the number of countries
allowing these kinds of suits has grown to more than 20,
including recent additions Italy, Poland and Mexico.

Mar 8, 2013

U.S. auditor watchdog criticizes PwC on quality control

March 7 (Reuters) – The U.S. regulator of corporate auditors
criticized PricewaterhouseCoopers on Thursday for not
doing enough to ensure its audits were properly carried out, in
a rare public reprimand of a major accounting firm.

The Public Company Accounting Oversight Board (PCAOB)
faulted PwC for not promptly addressing quality control problems
detected by the board in inspections of some 2007 and 2008 PwC
audits, such as sub par supervision and review of audit work.

Mar 7, 2013

Auditor watchdog criticizes PwC on quality control

By Dena Aubin

(Reuters) – The regulator of corporate auditors criticized PricewaterhouseCoopers on Thursday for not doing enough to ensure that its audits were properly carried out, in a rare public reprimand of a major accounting firm.

The Public Company Accounting Oversight Board (PCAOB) faulted PwC for not promptly addressing quality control problems detected by the board in inspections of some 2007 and 2008 PwC audits, such as sub par supervision and review of audit work.