Audit & Accounting

A federal judge gave preliminary approval to a $225 million settlement between KPMG and law firm Milberg Weiss Bershad & Schulman LLP.

Rep. Michael Oxley, R-Ohio, and chair of the House Financial Services Committee, whose surname represents half of the most famous hyphenate in the history of accounting reform, will retire from the House after 25 years in Congress.

In a joint statement, the American Institute of CPAs, the Securities Industry Association and the Bond Market Association said they would start anew discussions on auditor due diligence.

The Securities and Exchange Commission will begin random annual visits to investment advisors, instead of its usual five-year visits, a ccording to published reports.

KPMG LLP announced that it has admitted 166 new partners for 2005, the largest class of audit, tax and advisory partners in the firm's history.

In mid-October, accounting firm Grant Thornton LLP was contacted by both the Securities and Exchange Commission and the Public Company Accounting Oversight Board about its role as auditor of Refco Inc.

General Motors Corp. announced in a filing that the Securities and Exchange Commission is investigating the company's handling of retirement benefits and its relationship with bankrupt auto-parts manufacturer Delphi Corp.

The Committee of Sponsoring Organizations, the private sector group working to improve the financial reporting process, has issued a draft to help small filers comply with internal controls requirements on a cost-effective basis.

Big Four audit firm KPMG and its global network reported combined member firm revenues of $15.65 billion for the year ended Sept. 30, 2005, a 16.4 percent rise in U.S. dollars versus the prior year.

Since the passage of Sarbanes-Oxley more than three years ago, more than half of public and private companies participating in a survey revealed that they have changed their respective revenue recognition policies as a result of the sweeping reform act.