Audit

KPMG's Canadian member firm said it has begun to implement a plan to reimburse employees for unpaid overtime after it was slapped with a class action lawsuit.

A judge has tentatively approved a $38.25 million settlement to be paid by Deloitte & Touche to investors in Delphi.

The Financial Accounting Standards Board has issued final guidance on transfers of financial assets and repurchase financing, which should have an impact on the mortgage and real estate investment trust industry.

Two additional defendants have been charged with criminal tax fraud in a tax shelter case involving current and former partners at Ernst & Young.

CCH has introduced Knowledge-Based Audits of Governmental Entities, a module in its CCH Accounting Research Manager series that helps professionals comply with risk assessment standards.

Two accounting firms, Mueller Yuva & Osterman and Larson and Associates, have merged to combine their strengths in auditing, estate planning and other services.

Strategy and the Fat Smoker: Doing What’s Obvious But Not Easy by David Maister was given to me at the recent Winning Is Everything Conference, where he was a keynote speaker. This is the same David Maister who wrote the critically acclaimed Managing the Professional Firm (1993). I read that book twice and have heard him speak a number of times, and was always impressed by what he said, but always thought it was a bit theoretical.

The Securities and Exchange Commission has introduced Financial Explorer, a tool that shows corporate financial performance using interactive data in Extensible Business Reporting Language.

Last year, we published for the first time a ranking of CPAs by AUM (Assets Under Management). It was a huge undertaking by CPA Wealth Provider because we reached out to as many CPA firms as possible. Admittedly, we didn’t get all of them but we received a response that was staggering. We had two criteria for consideration: They must be a CPA firm that has a financial planning practice, even as a subsidiary or affiliate, and the financial planner in the office must hold a CPA credential. In the top list were 11 firms that were in “The Billion Dollar Club” while another 41 firms were in “The $100+ Million Club” and then a listing of those in the eight-figure category that we deemed “Rising Stars.” We also delved beneath the surface of just a ranking and unearthed what affiliations each firm had, such as broker/dealers, wire-houses, financial services companies, and the like. We went even further and revealed the areas of financial planning products that each firm recommended in basic categories such as IRAs, 401(k)s, mutual funds, life insurance, bonds, 529 plans, to name a few. The reaction from the accounting profession was simply wonderful. No one had ever seen such a ranking before and it opened the door now for a second ranking. Firms clamored for this to be an annual event, and we are complying. We are contacting everyone on our list from last year for updates plus additional firms that have contacted us. The final list will be compiled on May 1 and we will publish the rankings in the July 2008 CPA Wealth Provider. We encourage you to participate. For a copy of the Survey Form, contact me by email (stuart.kahan@sourcemedia.com), by fax (646) 264-6828, or write to me at Source Media, One State Street Plaza, 27th Floor, New York, NY 10004.

Mutual fund research company Morningstar has begun rating hedge funds.

The Securities and Exchange Commission's Advisory Committee on Improvements to Financial Reporting has released a progress report on its work to date.

XBRL US named Alfred R. Berkeley as the new chairman who will lead the board in 2008.

KPMG is holding a five-week competition among auditing students from more than 27 colleges and universities around the country.

Catapult Communications Corporation recently announced that it is changing accounting firms. What was intriguing about the press release was the detailed reason given for changing from a Big Four to a regional firm. It made the change “to significantly reduce its accounting expenses.”

An appeals court has overruled $300,000 in penalties levied against accounting firm Grant Thornton in a case involving the firm's audit of the First National Bank of Keystone.

A study of internal auditors around the world has uncovered similarities and sharp differences within the profession.

One dirty little secret of financial reporting is off-balance-sheet financing.

Two accounting statements from the Financial Accounting Standards Board could have a large impact on accounting firms and their business clients, said accounting firm BDO Seidman.

Are your clients pointed in the right direction? Gail Cunningham of the National Foundation for Credit Counseling recommends that people review where they are in order to determine where they’re headed, as well as encouraging them to consider implementing certain tips. The NFCC was founded back in 1951 and is the nation’s largest and longest serving national nonprofit credit counseling organization. She says that a few simple steps can make a dramatic difference in one’s financial life.

KPMG has signed a three-year agreement with champion golfer Phil Mickelson under which he will wear the KPMG logo on his headgear at all of his golf-related appearances.