Audit & Accounting

The Institute of Management Accountants is again rolling out its "Statements on Management Accounting."

After months of increasing reports of investigations by both the Securities and Exchange Commission and academics, Congress is now examining the sometimes-questionable timing of stock options granted to executives.

RSM McGladrey Inc. announced a Labor Day deal to acquire Phoenix-based real estate tax firm, Gaughan & Nahom PLC.

The Securities and Exchange Commission and Department of Justice have formally supported the constitutionality of the Public Company Accounting Oversight Board with the filing of a 46-page legal brief just before Labor Day.

The global managing partner of KPMG's Audit & Advisory Services Center has been given the additional role of global chief information officer for KPMG International.

More than 900 companies have used accelerated vesting schedules to avoid an estimated $8 billion in costs, according to a Bear Stearns report issued last week.

Now that hedge funds are getting crowded with institutions and smaller investors, the ultra-wealthy are getting crowded out.Not only have funds emerged that have initial investments as low as $25,000, but two of those new funds successfully raised initial capital through public sales of stock in early 2006.

FLOTEK INDUSTRIES ENGAGES UHY: Flotek Industries, a Houston-based manufacturer and marketer of innovative specialty chemicals, and downhole drilling and production equipment, dismissed UHY Mann Frankfort Stein & Lipp LLP as its auditor and engaged UHY LLP as its replacement.In a filing, Flotek said that UMFSL resigned as the company's auditors as a result of joining UHY, an accounting firm consolidator with which UMFSL had an affiliation.

On July 6, 2006, SEC Commissioner Paul Atkins spoke at the 11th Annual Conference of the International Corporate Governance Network (see www.sec.gov/news/speech/2006/spch070606psa.htm).The ICGN is a U.K. nonprofit that aims to "develop and encourage adherence to corporate governance standards and guidelines, and to promote good corporate governance worldwide." What a great audience to come before to display how this most powerful regulatory agency is committed to protecting the capital markets!

DELOITTE SURVEY FINDS GOVERNMENTS NEED TO CLOSE LOOPHOLES ON UNDERFUNDED PENSIONS: As the number of underfunded public pension funds has risen dramatically over the past five years, state and local governments need to close loopholes, adjust the level of employee contributions and rethink overall fund management, or risk a crisis, according to a Deloitte Research study.The report, titled "Paying for Tomorrow,"' also warned that the pending crisis could be aggravated by the coming wave of Baby Boomer retirees tapping into their pension accounts, unless fund managers move quickly to adopt a solution. Among the areas of greatest concern cited are: