Audit & Accounting

There is a greater push for transparency, both in terms of financial reporting and in regard to regulatory actions, but I wonder how successful this push will ultimately be. It is the regulatory bodies that will have to be the driving force, along with institutional investors. A recent action indicated to me that one particular regulatory body seems to have little concern for transparency. It was reported at www.indystar.com/apps/pbcs.dll/article?AID=/20070405/BUSINESS/704050480 that Conseco Life Insurance Co. has been fined $750,000 by Iowa regulators. The article reports that state kept secret exactly what triggered the penalty. This got me curious, as the fine was described as ”one of the Iowa Insurance Division's largest such penalties,” so I tracked down the order.

If I had a dollar for every time I heard the expression that you need to make sure your money outlives you, I would probably be retired 15 times over by now. It seems that this is the big signpost in front of all clients’ eyes.

If you think you understand IAS 39, "Financial Instruments: Recognition. and Measurement," then you haven’t read it, according to Sir David Tweedie, chairman of the International Accounting Standards Board.

In a decidedly non-scientific survey, Money Management International found that tax time can be very different for consumers born under different sun signs.For example, the MMI survey found that Libras expecting a refund plan to receive an average refund of $2,200, while Aries are expecting a significant $800 less.

The Securities and Exchange Commission endorsed the recommendations of the agency's professional staff to eliminate, “waste and duplication,” in companies’ compliance with the Sarbanes-Oxley Act.The change is particularly aimed at providing relief for smaller companies.

The Public Company Accounting Oversight Board released a new auditing standard along with guidance targeting how tax services are provided to people in financial reporting oversight roles.

The Securities and Exchange Commission filed, and settled, civil fraud charges against Tenet Healthcare Corp. and four former senior executives.

The Securities and Exchange Commission announced that its six district offices will become regional offices and report directly to the commission's Washington headquarters as of April 2.

The Securities and Exchange Commission announced last week that Nicor Inc., a Chicago-area natural gas distributor, and Jeffrey Metz, its former assistant vice president and controller, will pay more than $10 million to settle charges that they engaged in improper transactions, made material misrepresentations, and failed to disclose material information.The SEC filed a settled civil injunctive action against Nicor and Metz, alleging financial fraud lasting from 1999 to 2002. The funds Nicor and Metz agreed to pay in disgorgement and civil penalties will be placed in a fund for distribution to affected shareholders. Nicor also agreed to be permanently enjoined from violating the antifraud and reporting provisions of the federal securities laws.

SHAW AUDITOR RESIGNSThe Shaw Group Inc., a Baton Rouge, La.-based multi-services provider for clients in the government and private sectors, said that Big Four firm Ernst & Young will resign as the company's auditor.