Audit & Accounting

Audit committee members are more likely to support the auditor over management in an accounting disagreement when the compensation of members of the board audit committee includes long-term stock options, according to a new study.

The Trustees of the International Accounting Standards Committee Foundation, which oversees the International Accounting Standards Board, said they are seeking nominations to identify a successor to IASB Chairman Sir David Tweedie.

A new online poll by Deloitte Financial Advisory Services found that 27.4 percent of executives reported cuts in their companies’ compliance and internal audit departments.

The BDO International network of accounting firms blamed difficult market conditions for a slight decrease in annual revenues in dollar terms, although the network actually came out ahead in terms of euros.

The Securities and Exchange Commission has filed fraud charges against a health care financial services company after it allegedly provided investors with forged financial statements and audit reports to lure them into a $75 million investment scheme.

Officials from the Security and Exchange Commission and the Public Company Accounting Oversight Board cautioned a group of auditors against placing too much reliance on specialists hired for their expertise in areas such as fair value measurement.

Looking forward to 2010, the Public Company Accounting Oversight Board is bracing for a surge in litigation from the targets of its enforcement staff, a series of new regulatory responsibilities triggered by the Madoff Ponzi scheme, and corner-cutting by accounting firms squeezed by the ongoing economic crisis.

The dispute between Overstock.com and Grant Thornton heated up after the Internet retailer’s chief accused the firm of “inconsistencies and inaccurate statements.”

For the first time, the Securities and Exchange Commission has distributed more than $2 billion in a single calendar year to injured investors as a result of SEC enforcement actions and proceedings.

The International Public Sector Accounting Standards Board has published a paper questioning how financial statements can provide more information about the long-term sustainability of current government programs.