Audit

The increasing reliance of the Big Four accounting firms on their consulting and advisory practices may threaten the independence of their audit practices, according to some auditing experts.

GMI Ratings has compiled a second “Black Swan Risk List” identifying 40 North American companies with the highest risk of major drops in share prices within the next six months.

The Financial Accounting Standards Board has issued a proposed Accounting Standards Update aimed at clarifying the scope of transactions that would be subject to disclosures about offsetting of assets and liabilities on the balance sheet.

Mike Lynch, who founded the British software company accused by Hewlett-Packard Co. of falsifying finances, said that while he may have used some of the contested accounting and sales methods, they were all legal.

Recent network memberships, awards, new Web sites and more

The BDO network of accounting firms said Tuesday that annual revenue grew 6.11 percent worldwide for its member firms compared to last year.

Jeremy Friehling, the 23-year-old son of Bernard Madoff’s former auditor, David Friehling, has died of an apparently self-inflicted gunshot wound.

U.S. investors expect the country will eventually support International Financial Reporting Standards, but the process will take time and require substantial investment in staff and training, according to new research from the Association of Chartered Certified Accountants.

Recent network memberships, awards, new Web sites and more

The parent organization of the International Accounting Standards Board has opened its first regional office abroad, choosing Tokyo as the location of the London-based IFRS Foundation’s Asia-Oceania office.

The Securities and Exchange Commission and the Department of Justice have released A Resource Guide to the U.S. Foreign Corrupt Practices Act, a 120-page guide providing a detailed analysis of the U.S. Foreign Corrupt Practices Act, including the accounting provisions, and closely examining the SEC and DOJ approach to FCPA enforcement.

A female presence on a company board reduces the chance of financial restatements by close to 40 percent, according to a new study.

The American Institute of CPAs’ Accounting and Review Services Committee has issued exposure drafts of its proposed Statements on Standards for Accounting and Review Services as part of its Clarity Project and is asking for public comment on them.

The Securities and Exchange Commission issued an order Wednesday providing regulatory relief to accountants, publicly traded companies, investment companies, transfer agents, and others affected by Hurricane Sandy.

Officials with the Securities and Exchange Commission are taking a wait-and-see attitude toward incorporating International Financial Reporting Standards into the U.S. financial system, even as an increasing number of foreign companies file their financial reports with the SEC using IFRS.

The Public Company Accounting Oversight Board has released a new inspection report of PricewaterhouseCoopers LLP from last year in which it identified deficiencies, including three instances of what it terms “audit failures.”

The U.S. Financial Accounting Standards Board is expected to be one of the standard-setters participating in a multilateral group that will be advising the International Accounting Standards Board, but it will be among at least a dozen standard-setters from around the world participating in the group.

Check out all of our post-election coverage and find out what the results mean for accounting and tax professionals:

While the accounting profession's biggest political action committees lost their main bet on Election Day, they can hope to recoup some of their losses from their side bets in the Senate.

The International Federation of Accountants has released for comment a proposed strategy for projects it plans over the next four years to address the needs of accountants who work within companies or as advisors to businesses.