Regulatory actions and programs

The Public Company Accounting Oversight Board has voted to adopt a new ethics and independence rule concerning communications with audit committees, as well as an amendment to its existing tax services rule.

The Office of Federal Housing Enterprise Oversight has issued examination guidance regarding Statement of Financial Accounting Standards No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities.”

James K. Smith, chief financial officer of Phonom Corp., and James Stevenson, CFO of ABS Capital Partners, have joined the Private Company Financial Reporting Committee.

KPMG has established an IFRS Institute to address the needs of companies, investors and academics affected by the transition to International Financial Reporting Standards.

The Private Company Financial Reporting Committee, a joint effort of the Financial Accounting Standards Board and the American Institute of CPAs, is set to meet later this month.

“Keeping Retirement Plans Qualified” in the March issue of Practical Accountant was written just prior to the U.S. Supreme Court decision, LaRue v. DeWolff, in which the Court held that a participant in a defined contribution pension plan may sue a fiduciary under ERISA Section 502(a)(2) when claiming that a fiduciary breach caused a loss of plan assets allocated to the participant’s 401(k) plan account. It was pointed out in the article that employee benefit plan audits have now become not only financial statements, but also compliance audits. The Supreme Court opinion is further indication of that.

President Bush has named Steve Preston, head of the Small Business Administration, as his choice for the next secretary of Housing and Urban Development.

Greek accounting firm Savvides & Partners/PKF Cyprus agreed to pay $261,565 to settle charges with the U.S. Securities and Exchange Commission that it engaged in fraud in connection with its 1999 and 2000 audits of bankrupt software developer AremisSoft.

The Internal Revenue Service has put out a call for a priority list of items it should address with its upcoming guidance.

Private businesses across the U.S. and around the world are paying significantly more for staff than they did a year ago, according to a report by Grant Thornton.

Golf Trust of America, a former real estate investment trust, said it has selected Cherry Bekaert & Holland as its audit firm, replacing BDO Seidman.

The Securities and Exchange Commission will decide next Monday on its plans for any requirements and timeline for public companies to file their financial statements in an interactive data format.

CPAs who conduct valuations in the normal course of their practices are now required to comply with detailed standards.

The Public Company Accounting Oversight Board released a copy of its annual inspection of Grant Thornton, noting several deficiencies in the firm's audits of five clients.

CPAs who conduct valuations in the normal course of their practices are now required to comply with detailed standards.

Two former Arthur Andersen auditors have settled charges with the Securities and Exchange Commission accusing them of failing to exercise due professional care and skepticism in their 2001 audits of bankrupt telecommunications giant WorldCom.

Lately, it seems like the concepts of fair value measurement and mark-to-market accounting have been taking a lot of blame in the hand-wringing over what is causing the fallout in the credit and mortgage securities markets.

Piano maker Steinway Musical Instruments has opted to tune out Deloitte & Touche as its outside auditor and replace the Big Four firm with UHY, after its audit committee decided UHY offered a better price.

House Approves Taxpayer Assistance and Simplification Act

It is my belief that despite the various newsletters, publications and sections on the AICPA Website, what the AICPA is doing that directly impacts its members can be publicized better by the AICPA.