Audit & Accounting

The Committee of Sponsoring Organizations of the Treadway Commission issued a request for proposals to develop guidance to help organizations monitor the quality of their internal control systems.

In a second October acquisition, Clifton Gunderson LLP announced that it will acquire the Schaumburg, Ill.-based firm of Nykiel, Carlin & Co. Ltd.

The Internal Revenue Service announced adjustments to the dollar limitations set for pension plans in the 2007 tax year.

The Public Company Accounting Oversight Board has issued staff questions and answers about auditing the value of stock options granted to employees.The guidance provides direction for auditing a company’s estimation of the fair value of stock options granted to employees under its revised statement on share-based payments, standard, No. 123. The standard became applicable for financial statements of companies with fiscal years ending on or after June 15, 2006.

In a move that wasn’t unexpected, a judge vacated the conspiracy and fraud conviction against the late founder and former chairman of Enron Corp., Ken Lay.U.S. District Judge Sim Lake also granted the request by Lay's estate to dismiss the indictment used to bring Lay to trial. Lay died of a heart attack in early July, less than two months after a jury convicted him on six charges of conspiracy and fraud and Lake found him guilty on four charges of bank fraud.

The managing executive of the Crowe Chizek’s Commercial Services Group will become the chief executive of Crowe Group LLP in April.Charles “Chuck” Allen, 53, will succeed Mark L. Hildebrand, who is completing his second term as the head of the firm. Hildebrand was first named chief executive in 1999.

What’s becoming increasingly apparent as more and more companies reveal the results of internal investigations into the timing of stock options grants to executives, is that there’s really no cut and dry, right or wrong, when it comes to the practice.According to published reports and independent research groups, upwards of 130 publicly traded companies have announced that they are looking into their own options-granting practices -- and the actual number is surely much, much higher than that. But with many of those investigations wrapping up, what comes now?

Grant Thornton LLP, the U.S. member firm of Grant Thornton International, reported that its revenues for the 2006 fiscal year were up 22 percent, to $886 million.Among the firm’s highlights for the year ended July 31, 2006:

Speaking before 500 new partners, the chief executive of Deloitte Touche Tohmatsu announced that the firm’s global revenues would top $20 billion for the 2006 fiscal year, growth of 11.5 percent over the previous year.William G. Parrett said that financial services industry, consumer business, and manufacturing were the strongest industry sectors for member firms around the world, increasing 21 percent, 19.8 percent and 15.8 percent, respectively. Parrett also noted that 2006 was the fourth consecutive year of double-digit revenue and the 13th consecutive year of growth for the firm.

Baker Tilly International will soon formalize the relationship between 22 midsized accounting firms, creating a new network to be called Baker Tilly USA.Chairman of the board of Baker Tilly USA Robert J. Ciaruffoli, who is also the chairman and chief executive of member firm Parente Randolph, said that an official announcement won’t be released until later this month.