PCAOB REVOKES TWO FIRM REGISTRATIONSWASHINGTON - The Public Company Accounting Oversight Board has revoked the registrations of Armando C. Ibarra PC of Chula Vista, Calif., and Turner, Stone & Co. LLP in Dallas, citing violations of PCAOB guidelines and auditing standards uncovered during its inspection process.
The PCAOB said that both Ibarra and Turner Stone & Co. "failed to exercise due professional care, skepticism and prepare appropriate audit documentation."
The audit watchdog said that the violations committed by Armando C. Ibarra PC were revealed in four of its issuer clients from the period between 2003 and 2005. The report on Turner Stone said that the firm committed the audit violations for an issuer client during 2004. The oversight body also revealed that a previous PCAOB inspection had unveiled a series of deficiencies that the firms failed to correct. Both firms may re-apply for registration after a two-year period.
The reports are available online at www.pcaobus.org/enforcement/disciplinary_proceedings.
WEAVER & TIDWELL ADDS HOUSTON FIRM
FORT WORTH, TEXAS - Southwestern regional CPA firm Weaver and Tidwell LLP announced that it would merge with Houston-based McDonald, Fox and Lund PC. Terms of the merger, which was effective January 1, were not disclosed.
Founded in 1975, McDonald, Fox & Lund, which has six partners and roughly $6 million in revenue, specializes in privately held businesses, energy and construction companies, and health care organizations. MF&L managing partner John E. McDonald has been named executive partner for Houston. All of the firm's employees, including 13 CPAs, will join Weaver and Tidwell.
Weaver and Tidwell ranked No. 91 on Accounting Today's 2006 Top 100 Firms roster, with revenues of $26.24 million. In August the firm announced that its fiscal 2006 revenues had grown 20 percent, to $31 million.
IFAC PROPOSAL TARGETS INDEPENDENCE
NEW YORK - The International Federation of Accountants is proposing the first major revisions to its code of ethics for accountants since late 2001. A new exposure draft from its independent International Ethics Standards Board for Accountants largely updates and strengthens the independence requirements outlined in the ethics code.
In a statement, the board said that the changing environment of recent years led it to consider possible changes that might be needed. Over the two-year development period of the draft, the board consulted with a wide range of constituents. Significant modifications include:
* Expanding the applicability of partner rotation requirements;
* Updating requirements related to the provision of non-assurance services, including setting out additional guidance on the provision of tax services to audit clients; and,
* Extending independence requirements to the audits of a wider range of entities of significant public interest.
Comments on the draft are requested by April 30, 2007. The draft is available at www.ifac.org/eds.
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