Accounting & Auditing

Not long ago, when shareholder value seemed to be exploding in every sector, companies were too busy counting revenue to focus on leaks in the stream. But, as we have all learned too well, success can breed complacency — and bad habits. Many companies, flush with boom times, took their eye off the ball. They […]

On Oct. 7, The Public Company Accounting Oversight Board adopted final rules relating to inspections of registered public accounting firms. Background According to Section 104 of Sarbanes-Oxley, the PCAOB must conduct a continuing program of inspections to assess how public accounting firms are complying with the Act and subsequent rule-making and professional standards. On July […]

DETAILS Download The Study On Public Company Views Of Auditors Download The Original Study On Accounting Firm Consolidation As a follow-up to its August study on auditor consolidation, the GAO last week published a report that looked at large public company views on audit fees, quality and choice. The report found “high levels of satisfaction” […]

Grant Thornton LLP, the nation’s fifth largest accounting firm, recently announced that it would refrain from providing a number of internal control services to public audit clients. According to Grant Thornton CEO Ed Nusbaum, the move reflects a “principles- versus rules-based approach to accounting” that is in keeping with the intent of Sarbanes-Oxley. “There are […]

According to a recent study in USA Today, new accounting rules and renewed emphasis on transparency has “all but squashed” the use of pro forma numbers. According to the study, conducted with Thomson First Call, only 28 of the 444 companies in the S&P 500 that reported second-quarter results provided numbers “that subtracted anything other […]

Last week, the GAO’s SOX-mandated study on the accounting industry found that smaller firms faced significant barriers in competing with the “tight oligarchy” of the Big Four. We asked Edward Nusbaum, the CEO of the fifth-largest accounting firm Grant Thornton, for his reaction to the study, its impact on GT, and his thoughts on the […]

37 percent of financial professionals that provide information for their firms’ public-company filings with the SEC are asked to sign an affidavit or “subcertification” vouching for the accuracy of that information. Subcertifications are sometimes known as “cascading certifications” or “managerial attestations.” The findings were part of a recent study conducted by the Association for Financial […]

147-page study found audit fees were increasing, smaller accounting firms faced significant barriers to entry, and more…

Complete text of the SEC study on the adoption by the U. S. financial reporting system of a principles-based accounting system.