PCAOB REVIEWS FOUR YEARS OF AUDIT FIRM DEFICIENCIESWashington, D.C. - The Public Company Accounting Oversight Board has released a report summarizing its inspection findings between 2004 and 2007 of eight of the largest domestic accounting firms, outlining the many problems it has found with their audits.
The report describes deficiencies observed in areas that are fundamental to any audit, such as testing of revenue, as well as areas that pose increasingly challenging issues in current market conditions, such as testing of fair value measurements. However, the report did not list any of the firms by name.
Other deficiencies include identifying departures from GAAP; auditing of management's estimates, income taxes and internal control; performing analytical procedures and audit sampling; using the work of specialists; and assessing materiality, audit scope and audit differences.
The report also includes information on changes in the quality control systems that firms have described in the remediation plans that they submitted in response to the first years of inspection reports. These include changes to their structure, partner evaluation processes, internal inspection programs, procedures for using the work of foreign affiliates, and processes for compliance with independence requirements.
CITRIN COOPERMAN BUILDS SMALL BUSINESS SERVICES
New York - Accounting firm Citrin Cooperman has added a "Growth & Protection Team" to provide business consulting services to small and midsized businesses.
The team's services will include recommending profit-enhancement strategies and internal controls improvements. It will also assist with securing capital, employee compensation, budgets and forecasts, mergers and acquisitions, and exit strategies and succession planning.
Citrin Cooperman already provides many of these services to clients, but the formalization of the Growth & Protection Team will focus the firm's efforts on supplying this type of value-added consulting. The team will be led by partner-in-charge Alan Badey, who also oversees the firm's Westchester County, N.Y., office.
PLANTE MORAN GOES GREEN
Grand Rapids, Mich. - Accounting firm Plante & Moran has transplanted its Grand Rapids offices into a larger and "greener" space. The firm signed a lease on new office space that includes energy-efficient utilities and on-site recycling. The new offices will provide space for 112 staff members, with room to accommodate future growth. The building allowed Plante & Moran and other tenants to use environmentally friendly products, materials and building methods, including a "white" roof that will reduce energy usage and the urban "heat island" effect. Water-efficient plumbing fixtures are expected to reduce water and sewage usage by 40 percent.
The use of energy-efficient heating, ventilation, cooling, lighting and water systems also promise to minimize environmental impact. In addition, the firm is recycling 50 percent of all its construction waste, thereby diverting it from landfills.
MOORE STEPHENS FROST SHORTENS NAME
Little Rock, Ark. - Accounting firm Moore Stephens Frost has changed its name to Frost PLLC.
Last year, Moore Stephens Frost acquired Lynch & Howard, an 80-year-old accounting firm based in Raleigh, N.C. The firm also acquired the practice of Rick J. Tanneberger CPA PA, based in Fayetteville, Ark.
The firms had agreed to create a common identity after merging, but because none of the previous names would meet the licensing requirements of the state boards of public accountancy in all the states in which they operate, the name Moore Stephens Frost was shortened to Frost PLLC.
The offices will remain in the current locations, with the same mailing addresses, phone and fax numbers.
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