Audit

Our column in the previous issue considered the Securities and Exchange Commission’s recently appointed Committee on Improvements to Financial Reporting, which has been charged with finding ways to strengthen the system. As our readers might expect, we found flaws among the premises in a discussion paper by the chair, Robert Pozen (available at www.sec.gov/about/offices/oca/acifr/acifr_discussion.htm).In this column, we look at the first five of 10 specific points in Pozen’s paper that deserve exposure and that will demand additional attention from the committee. Our next column will address the remaining five.

A jury trial is scheduled to begin Monday in hedge fund Costa Brava's lawsuit against accounting firm Goodman & Co. over its audits of defense technology contractor Telos.

The Governmental Accounting Standards Board has issued a statement that requires government endowments to report their land and other real estate investments at fair value.

The Internal Revenue Service has issued a sample notice that 401(k) and 414(w) plan sponsors can use to tell plan participants about their rights and obligations under the Pension Protection Act’s eligible automatic contribution arrangements and qualified automatic contribution arrangements.

The Public Company Accounting Oversight Board has approved a budget for calendar year 2008 that predicts the board will outlay approximately $144.6 million, compared to $136.4 million in 2007.

The Securities and Exchange Commission has weaknesses in its internal controls, according to a report by the Government Accountability Office.

The difference between a rhetorical question and a survey question is someone answers. Before we find out what type of question my title is, here’s why I posed it. Firms find about how other firms operate in a number of ways. It might be from contact with partners in other firms; via membership in groups, organizations, or societies; by hiring consultants; or possibly by reading about other firms in professional publications.

David Greenberg, a former tax partner with KPMG, faced a superseding indictment that added six more charges of tax evasion to the charges he was already facing as part of the government's case against KPMG's marketing of questionable tax shelters for clients.

WebCPA presents a free online session discussing various facets of philanthropy and its potential benefits for accountants.

Wolters Kluwer Tax and Accounting announced that it has closed its acquisition of the TeamMate software business from PricewaterhouseCoopers.

The International Auditing and Assurance Standards Board is looking for a new chairperson.

I just received the results of a new survey that was conducted by market research provider Vizu Corporation on behalf of RetireeWorkforce.com (courtesy of my friend, Nazli Ekim of SS/PR) in which it is noted that more than three-quarters of people working today say they plan to continue being employed into their retirement years. In fact, almost 40 percent of all respondents report that they anticipate doing so for monetary reasons, either to meet daily needs or to boost their quality of life. These are not surprising results given what’s been happening with the economy today and especially the housing world. Actually, to break this down even more, 34.1 percent of those surveyed claim they will work to “make ends meet,” while another 14.7 percent note they seek employment to “earn extra income to boost their quality of life.” Interestingly enough, 22 percent say that their motivation for working would be “the mental stimulation and challenge” while a scant 4.7 percent explain that it would be for “personal and human interaction.” I always thought that last one was the primary reason. Apparently not…at least, not according to this survey. Joe Salice, the president and CEO of RetireeWorkforce.com, points out that attitudes about work are definitely changing. “People are perceiving work as much more of a lifelong endeavor, rather than simply a lengthy phase.”

The Securities and Exchange Commission has voted to remove the requirement for non-U.S. companies to reconcile their financial statements to U.S. generally accepted accounting principles.

The Financial Accounting Standards Board reaffirmed an earlier vote against a blanket deferral of Statement 157, "Fair Value Measurements," but granted a deferral for some assets and liabilities.

A recent study found that some companies are more effective at controlling fraud and have different perceptions of what needs to be done to prevent abuse.

The Securities and Exchange Commission is expected to drop the requirement for foreign companies that list on exchanges in the U.S. to reconcile their financial results to U.S. generally accepted accounting principles.

Two firms in South Florida said they were merging, with Berenfeld, Spritzer, Shechter & Sheer LLP, expanding by combining with Lefcourt, Billig, Tiktin & Yesner.

The Securities and Exchange Commission has received letters from accounting organizations and firms responding to its concept release on allowing public companies to prepare financial statements in accordance with International Financial Reporting Standards, some in favor and some opposed

Southern accounting firm Carr, Riggs & Ingram has acquired Bumpus Hall, allowing the firm to expand into the Nashville area.

KPMG Chairman Timothy P. Flynn told the China Chamber of Commerce that his firm has been growing dramatically in China.