Audit & Accounting

For The Spirit of Accounting's 10th anniversary in 2006, we reminisced about events over that decade, including this synopsis of a misjudgment that may be the worst ever:

WHERE'S MY REFUND?

The American Institute of CPAs told the Internal Revenue Service Oversight Board at a hearing Tuesday that the IRS needs to improve its correspondence audit program to lessen the burden on taxpayers.

The Securities and Exchange Commission has proposed new rules aimed at safeguarding investors from identity theft by requiring broker-dealers, mutual funds and other SEC-regulated entities create programs to detect and respond to “red flags” indicating possible identity theft.

The Public Company Accounting Oversight Board voted Tuesday to issue for public comment a proposed auditing standard on related-party transactions, and to amend standards on significant unusual transactions and auditors of broker-dealers.

The Big Four global audit firms, which dominate the Chinese market, are negotiating with Beijing to lessen the impact of forced changes that could mean only accountants with Chinese qualifications can be partners in their audit practices.

The International Valuation Standards Council has begun a project with the goal of bringing greater consistency to how financial derivatives should be valued, even as the International Accounting Standards Board and the Financial Accounting Standards Board continue to tinker with their financial instruments accounting standards project.

The Public Company Accounting Oversight Board plans to hold an open meeting on Tuesday to consider issuing a proposed auditing standard on related parties and to amend other auditing standards to address significant unusual transactions and broker-dealer auditors.

Firm News -- February 24

What is the meaning of art? The IRS may have the answer.