Audit & Accounting

Late last month, the SEC announced the institution and simultaneous settlement of an enforcement action against Morgan Stanley (Morgan Stanley & Co. Incorporated and Morgan Stanley DW Inc.). The SEC action alleged that Morgan Stanley failed to maintain and enforce adequate written policies and procedures to prevent the misuse of insider information in its possession.

More than 2,000 companies appear to have used backdated stock options, according to a new paper from professors at the University of Iowa and Indiana University.

New rules will allow the New York State Board of Regents stronger local oversight of CPAs who are disciplined by the Securities and Exchange Commission.

The Financial Accounting Standards Board issued an interpretation that clarifies the way companies account for uncertainty in income taxes.

Natural gas distribution company Nicor Inc. will reportedly pay a $10 million fine to settle charges of deceptive accounting practices brought by the Securities and Exchange Commission.

New guidance, stressing efficient application of effective internal control over financial reporting, was released this week by the Committee of Sponsoring Organizations of the Treadway Commission.

Following a judge's suggestion, 16 former KPMG partners facing charges over their role in selling questionable tax shelters are suing the Big Four firm for legal fees.

Last week, the Financial Accounting Standards Board and the International Accounting Standards Board each published for public comment a consultative document setting out their preliminary views on the first two chapters of an enhanced conceptual framework. The draft chapters define the objective of financial reporting, and the qualitative characteristics of decision-useful financial information.

STUDY SAYS FEE-ONLY ADVISORS BOOSTING CLIENT REVENUEFee-only financial advisors are increasing client numbers, revenue and profits at impressive rates, according to a new benchmarking study issued by the National Association of Personal Financial Advisors and produced by CPA and business advisory firm Moss Adams LLP.

Did you know that your clients could be held liable for their employees' missed investment opportunities? Through a number of recent class-action lawsuits over the mismanagement of pension plans, corporate fiduciary responsibility has been brought to center stage.The fallout from these cases has put employers across the nation at risk by exposing their fiduciary responsibility.