Audit & Accounting

Barely a week after a federal jury found HealthSouth founder Richard Scrushy not guilty of participating in a massive accounting fraud, the Securities and Exchange Commission was preparing civil charges against the former chief executive.

In a divisive 3-2 vote, the Securities and Exchange Commission amended and re-approved a proposed rule requiring the directors of mutual funds to be independent that had been ruled against by a federal court in a lawsuit a little more than a week before.

President Bush nominated Roel Campos and Annette Nazareth as members of the Securities and Exchange Commission, the White House said in a statement Friday.

The Public Company Accounting Oversight Board has scheduled a meeting for Tuesday and will vote on finalizing two rules proposed in December and March. One rule deals with auditor independence and tax shelters, while the second concerns weak internal controls.

Already with a lengthy to-do list before adjourning for its August recess, reports have Congress moving to address the future of the estate tax soon.

CPA2Biz has developed an Audit & Control Technology Store to provide valuable product guidance, reviews and discounted technology tools to CPAs and financial managers.

Senate lawmakers indicated they could hold confirmation hearings as early as next week for nominees to the Securities and Exchange Commission.

A California judge sanctioned accounting firm KPMG last week for hiding documents in a $50 million accounting malpractice suit brought by computer case and accessory supplier Targus Group International Inc.

The American Institute of CPAs has produced a toolkit for government audit committees, the third in a series.

The Norwegian branch of KPMG International was ordered to pay $100 million in damages Friday, after Oslo's district court found that the accounting group was negligent in auditing the books of Finance Credit. KPMG International has said that it will appeal.