A new GAO study states that mandatory audit firm rotation “may not be the most efficient way to strengthen auditor independence and improve audit quality.” The study, which was nearly four months late (it was mandated by SOX and was due back on July 30th), also stated that mandatory auditor rotation may cause a “loss […]
Compliance Week
Posted inAccounting & Auditing
If You Owe PCAOB Fees, Auditor Can’t Provide Opinion
If your company hasn’t paid its “accounting support fee” to the new accounting oversight board, you may want to talk to the accounts payable department. According to PCAOB rules, a public accounting firm cannot sign an unqualified audit opinion with respect to an issuer’s financial statements if the issuer has “an outstanding past-due share of […]
Posted inFrom the Archive
Cash Flow, Investor Returns To Determine GE CEO Pay
On Sept. 17, General Electric said its compensation committee had awarded Chairman Jeff Immelt with a new form a performance-based stock units that would convert to GE stock after five years if certain goals had been met. RELATED STATEMENT From GE Compensation Committee Chair Andrew Sigler: “The goals of our executive compensation strategy are to […]
Posted inFrom the Archive
IRS And States To Cooperate On Abusive Tax Shelters
On Sept. 16, the Internal Revenue Service and state tax officials announced the establishment of a nationwide partnership to combat “abusive tax avoidance.” Forty states (see below) and the District of Columbia joined the IRS today in announcing the agreements, and more states are expected to sign the agreement in the weeks ahead. Under the […]
Posted inBoards & Shareholders
Study Holds Wealth Of Information On Board Practices
Korn/Ferry International, one of the world’s largest executive recruitment firms, recently published its 30th Annual Board of Directors Study, which is packed with interesting information on board trends and practices. Some expected changes are charted at right, but the study also charted board composition and compensation practices in great detail, comparing U.S. practices with those […]
Posted inFrom the Archive
What Does The SEC Look For? Games Against Time
In today’s heightened regulatory environment, what are common flags the SEC looks for that might indicate problems? We addressed these and other questions with Vinson & Elkins partner Rick Sauer, a former Assistant Director with the SEC’s Division of Enforcement. COMMON FLAGS One of the weaknesses of GAAP is that, by itself, it can’t necessarily […]
Posted inFrom the Archive
Survey Illustrates How Investment Pros Use Your Data
RESPONSES Most Important Statements Additional Info. Sources 1. Footnotes to Financials 2. Interim Financial Statements 3. Earnings Releases 4. Mgmt’s Discussion & Analysis 5. Conference Calls, Meetings SOURCE: AIMR A recent survey of nearly 2,000 analysts and portfolio managers that rated companies on the overall quality of financial reporting (they got a “C+” if you […]
Posted inFrom the Archive
Review Of Controls, Auditor Top Executive Actions
Nearly three quarters of executives responding to a recent survey claim to have enhanced their internal controls over the past year. According to the survey, sponsored by Hill & Knowlton and recruitment firm Korn/Ferry International, 64 percent of respondents also claim to have reviewed their auditor and accounting relationships, and 55 percent have revised their […]
Posted inFrom the Archive
SEC Proposes Fund Subadviser and Short Sale Rules; Adopts Changes to Rule 10b-18
On Oct. 22, the Securities and Exchange Commission voted to amend Rule 10b-18 regarding “safe harbor,” and proposed related disclosure regulations. The Commission also voted to propose a new rule and rule amendments concerning shareholder approval of subadvisory arrangements at investment companies, and to propose new rules and rule amendments and issue an interpretive release […]
Posted inFrom the Archive
Parson Says 60 Percent of S&P Not Hitting Future Deadlines; Offers Tips
LINKS Download The Parson Survey Results According to a survey conducted by Parson Consulting, 60 percent of S&P 500 companies aren’t yet meeting the shorter quarterly filing deadline of 40 days for 2004. In the coming fiscal year-end, quarterly financial reports will need to be filed within 40 days of a quarter’s end instead of […]
