Audit

The Public Company Accounting Oversight Board has published guidance to help auditors apply Auditing Standard No. 5 to audits of internal controls at smaller public companies.

KPMG has named John Veihmeyer as the new CEO of its U.S. member firm, KPMG LLP, as Timothy Flynn assumes the role of chairman of KPMG International’s newly formed Global Executive Team.

Accounting firms Blum, Shapiro & Co., and Nishball, Carp, Niedermeier, Pacowta & Co., have merged, building Blum's presence in Connecticut.

Here's a smart idea for all you financial planners out there. Target the children of your Baby Boomer clients. Read more on the Accounting Tomorrow blog.

The incoming chair of the Securities and Exchange Commission, Mary Schapiro, criticized the International Accounting Standards Board and expressed reluctance to move to International Financial Reporting Standards.

Southeast super-regional CPA firm Dixon Hughes plans to integrate the practice of Orlando-based Rosenfield Co., effective Feb. 1.

Steve Tait, president of H&R Block's accounting subsidiary RSM McGladrey, plans to resign, effective April 30.

Carl Famiglietti is managing partner of Moody, Famiglietti & Andronico, based in Boston. He says that accounting firm management often finds itself locked in a tug of war between applying theory and being pragmatic, a struggle that can dampen capabilities and in some cases, the overall development of a firm. “For firms of fewer than 30 professionals, the tendency to avoid creativity in favor of traditional tactics can create a stifling atmosphere--or worse, it can lead them to rationalize that remaining static in size or approach is justifiable.” He points out that in this difficult economic environment, sustained, substantial growth is very much attainable and to achieve revenue growth that better enables innovation, leaders must drive towards a vision of what their firm will look like when their goals are achieved. In this respect, he says that the approach requires the eradication of three myths: Myth #1: Competition for Worthwhile Business is Too Intense Famiglietti notes that in a needs-based business such as accounting, the economic viability of the entire country depends on CPA expertise and involvement. “This means that although competition is intense (as it is in all fields), there is business for every capable participant.” He says that while large national firms control the lion’s share of the market, open opportunities are all around us. “The keys to capturing these opportunities lie in the investments a firm is willing to make. Some CPA firms view expenses in infrastructure, education, recruiting, and marketing as costs to be minimized. However, for real sustained growth to be achieved, the mindset of CPA firms should be more aligned with some of the best run companies in America.” Myth #2: Good Talent is Hard to Find According to Famiglietti, good talent is everywhere. “Virtually every candidate that enters into an interview process has great gifts to contribute as long as they are properly motivated, empowered, and rewarded for their contributions.” He adds that the ROI on education, regardless of the curriculum, is without limit and it is the only investment that provides sustained agility and immediate adaptability to the many external forces the market may impose upon a firm. Myth #3: Control Rests with the Partners Famiglietti notes that before transparency was an essential ingredient to trust among companies and stakeholders, markets and investors, and providers and clients, relationships were built on seniority. “To win a client’s trust, partners served as exclusive client contacts. Virtually all correspondence needed to be routed across their desks, and accounts were considered in jeopardy should a client be exposed to junior professionals.” He feels that clients relate to all types of individuals. “Indeed, they may relate to less experienced firm members equally if not more than they do to more senior professionals. In the end, clients want reliable and timely results and professionals want a challenge; for those two reasons alone, it is increasingly imperative for more seasoned professionals to yield control to those yearning for experience.” To Famiglietti, growth is often repressed when leadership’s belief in traditionalism and “how things are” exceeds their vision and passion of “how they could be.” He says that firms which experiment continually will find that just as in industries such as technology and pharma, innovation is a risk worth taking. “It is applying a theorist’s passion and creativity that will break the vicious cycle of stagnation and draw a trajectory of progression, talent recruitment, increased revenues, and profitability.” Above all, he concludes, leaders are those who adapt to external factors but do not let their fate be determined by the market. “Those firms that form a management strategy devoid of myths, that remain aligned with their mission, and that create an environment of trust and development will be poised to capitalize on the opportunities at hand.”

The Securities and Exchange Commission will make sure that companies are properly using fair value accounting and not deceiving investors, warned an SEC official.

An online survey of about 1,445 finance and technology professionals by Deloitte Financial Advisory Services found that 58.4 percent expect the recession to last for another two to three years.

The International Auditing and Assurance Standards Board has issued a practice alert to help auditors and management assess the impact of the credit crisis on going-concern assumptions.

KPMG has named a new chief information officer and a new leader of its tax restructuring and corporate recovery practice.

The Securities and Exchange Commission's Office of Economic Analysis has extended the deadline to January 31 for public companies to participate in a Web-based survey about the costs and benefits of Section 404 of the Sarbanes-Oxley Act.

Bernard Madoff's longtime auditor is gravely ill with cancer and his family has reportedly lost much of their money from investing in the $50 billion Ponzi scheme.

Retirement recordkeeping software developer ExpertPlan has acquired Actuarial Enterprises Inc., a third-party administrator of defined benefit and insurance plans.

Deloitte Touche Tohmatsu sees continuing problems for the global economy in the first quarter of 2009 in a new report, but predicts that companies can still find attractive opportunities in emerging nations in the years ahead.

Adaptive Planning introduced the latest version of its on-demand corporate financial planning software, adding new collaboration features, including cell notes and an audit trail.

Henry R. Keizer is global head of audit for KPMG International and also serves as U.S. vice chair, audit, for the U.S. member firm, KPMG LLP.

Indian outsourcing company Satyam Computer Services has chosen Deloitte and KPMG to help restate financial statements audited by PricewaterhouseCoopers' Indian affiliate, Price Waterhouse, after Satyam's chairman admitted to a massive accounting fraud.

Rosen Seymour Shapss Martin & Co. has merged with another New York accounting firm, Miller Ellin & Co., expanding RSSM's ability to service its audit, tax and consulting clients.