Audit & Accounting

The Public Company Accounting Oversight Board is facing an uncertain future after several justices on the high court appeared to side with the accounting firm and conservative group that hope to prove the board is unconstitutional.

FASB Chairman Robert Herz and AICPA Accounting Standards Executive Committee Chairman Jay Hanson separately acknowledged that many assets and financial instruments do not need to be measured at fair value on the balance sheet.

Securities and Exchange Commission Chief Accountant James L. Kroeker told leaders of the accounting profession that independent auditors will be expected to consider the interests of the “investing public” — not just their audit clients — when performing their duties.

Audit committee members are more likely to support the auditor over management in an accounting disagreement when the compensation of members of the board audit committee includes long-term stock options, according to a new study.

The Trustees of the International Accounting Standards Committee Foundation, which oversees the International Accounting Standards Board, said they are seeking nominations to identify a successor to IASB Chairman Sir David Tweedie.

A new online poll by Deloitte Financial Advisory Services found that 27.4 percent of executives reported cuts in their companies’ compliance and internal audit departments.

The BDO International network of accounting firms blamed difficult market conditions for a slight decrease in annual revenues in dollar terms, although the network actually came out ahead in terms of euros.

The Securities and Exchange Commission has filed fraud charges against a health care financial services company after it allegedly provided investors with forged financial statements and audit reports to lure them into a $75 million investment scheme.

Officials from the Security and Exchange Commission and the Public Company Accounting Oversight Board cautioned a group of auditors against placing too much reliance on specialists hired for their expertise in areas such as fair value measurement.

Looking forward to 2010, the Public Company Accounting Oversight Board is bracing for a surge in litigation from the targets of its enforcement staff, a series of new regulatory responsibilities triggered by the Madoff Ponzi scheme, and corner-cutting by accounting firms squeezed by the ongoing economic crisis.