Accounting & Auditing


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Webcast: Understanding risks & compliance

2020-01-23T14:04:00+00:00Provided by

Fraud and restatements are happening every day, and it’s important to recognize that your company is consistently exposed to risk. Change is constant, and the stakes are high.

Accounting fraud

SEC charges Hill International with accounting fraud

2020-01-21T18:09:00+00:00By

The SEC has brought charges against Hill International, its former chief accounting officer, and a former senior accountant for engaging in accounting fraud and disclosure violations at the construction management consulting firm.

AuditOpinionFeature

Audit fees level off in 2018, study shows

2020-01-21T15:36:00+00:00By

Public company audit fees remained virtually unchanged in 2018, according to the latest annual study by Audit Analytics.

AccountingUpdates

FASB issues first ASU of 2020

2020-01-17T22:52:00+00:00By

FASB has issued the first accounting standard update of the new year, clarifying the interaction between accounting standards related to equity securities, equity method investments, and certain derivatives.

KPMG

SEC bars former KPMG leader atop ‘chain of corruption’

2020-01-15T20:06:00+00:00By

The Securities and Exchange Commission has suspended a former KPMG leader from appearing or practicing before the SEC after he was convicted of a felony last year.

2020Strategy

Tip sheet: 2020 priorities for accounting and audit regulators

2020-01-14T15:10:00+00:00By

With the new year under way, we highlight some focus areas of accounting and audit regulators—SEC, PCAOB, and FASB—that should be top of mind for boards of directors.

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Chartered IIA publishes new Internal Audit Code of Practice

2020-01-09T14:50:00+00:00By

The Chartered Institute of Internal Auditors announced the publication of new guidance intended to serve as an industry benchmark to improve the effectiveness of internal audit functions.

HotTopics

Hot topics for 2019 year-end audits

2020-01-09T13:36:00+00:00By

As auditors get ready for year-end audits, internal controls and new accounting standards are on their radar.

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PCAOB: Best practices in improving audit quality

2020-01-03T14:55:00+00:00By

The PCAOB has published a document that offers insights from audit committee chairs on what procedures have worked best for them in improving audit quality.

Audit

SEC plans to ease auditor conflict-of-interest rules

2020-01-02T18:57:00+00:00By

A proposed update to auditor independence rules relaxes restraints on affiliate relationships and initial public offerings.

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FASB cloud computing cost standard to soon take effect

2020-01-02T15:35:00+00:00By

An updated cloud computing standard from the Financial Accounting Standards Board will clarify expenses associated with Web hosting arrangements for cloud computing.

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Top ethics and compliance failures of 2019

2019-12-27T17:13:00+00:00By

From antitrust and privacy concerns in the tech world to compliance officer liability in the pharmaceutical industry to unethical practices in the banking and accounting professions, more than a dozen companies made Compliance Week’s list of the biggest compliance fails in 2019.

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IRS issues proposed regs on compensation rules under tax reform

2019-12-24T15:19:00+00:00By

Companies have a little more clarity from the Internal Revenue Service about how to interpret provisions under tax reform affecting executive compensation.

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EY chief accountant to succeed Golden as FASB chair

2019-12-20T20:34:00+00:00By

The Financial Accounting Standards Board announced the appointment of EY Chief Accountant Richard Jones to succeed Russell Golden as chair, effective July 1, 2020.

MoneyFine

MetLife to pay $10M for ‘longstanding’ accounting errors

2019-12-20T14:08:00+00:00By

MetLife will pay a civil penalty of $10 million to resolve charges the insurance company violated the books and records and internal accounting controls provisions of federal securities laws.

Jail

Ex-WorldCom CEO released from prison early

2019-12-19T18:37:00+00:00By

Former WorldCom CEO Bernard Ebbers was granted early release from prison due to deteriorating health. Ebbers had served 13 years of a 25-year sentence for participating in one of the biggest accounting frauds in U.S. history.

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FASB finalizes simplification of income tax standard

2019-12-19T16:11:00+00:00By

The Financial Accounting Standards Board has issued an Accounting Standards Update to finalize changes to income tax accounting meant to simplify the process.

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Review urges changes to U.K. audit profession

2019-12-18T20:22:00+00:00By

The latest report to examine the shortcomings of the U.K. audit market recommends separating audit from the accountancy profession, among other suggested changes.

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PCAOB seeks input on modernizing QC standards

2019-12-17T21:23:00+00:00By

The PCAOB is accepting public comment on a potential approach to revising the board’s quality control standards in place since 2003 and outdated by modern technology.

Accounting fraud

SFO charges two former Serco directors with fraud, false accounting

2019-12-16T17:01:00+00:00By

The U.K. Serious Fraud Office has charged two individuals with fraud and false accounting concerning Serco’s electronic monitoring contract with the Ministry of Justice.

Shell

Life after LIBOR: Shell throws weight behind SOFR

2019-12-13T19:07:00+00:00By

Royal Dutch Shell has announced the signing of one of the world’s first credit facilities linked to the new Secured Overnight Financing Rate.

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White paper: 6 Ways to Improve Audit Readiness

2019-12-13T08:10:00+00:00Provided by

Even for the best-prepared accounting teams, the annual audit can be a time of immense anxiety and sometimes frustration. Between client and audit team miscommunication, haphazard PBC lists, fluctuating trial balances, and the simple fact that the in-house accounting team has already moved on to a new fiscal year, it’s ...

Caution

PCAOB CAMs report: Goodwill, revenue recognition lead way

2019-12-11T19:42:00+00:00By

Goodwill and other intangible assets and revenue recognition are among the most frequently communicated critical audit matters, according to the Public Company Accounting Oversight Board’s first report on the new disclosure.

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Liabilities and equity, LIBOR among priorities for FASB’s Golden

2019-12-11T17:56:00+00:00By

In a speech Tuesday, FASB Chairman Russell Golden laid out the accounting areas he hopes to finalize changes to before his term ends June 30, 2020.

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Celadon execs charged with accounting fraud

2019-12-06T18:30:00+00:00By

Two former top executives of trucking company Celadon Group face civil and criminal charges for their participation in an accounting fraud scheme that inflated the company’s income and earnings per share.

Accounting fraud

Iconix, three former execs charged with accounting fraud

2019-12-06T17:02:00+00:00By

Iconix Brand Group and three of its former top executives were charged by the SEC for engaging in accounting fraud. Iconix and two of the executives agreed to settle, with litigation still pending against the company’s former CEO.

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Goodwill impairments more than doubled in 2018, says recent study

2019-12-06T15:18:00+00:00By

Goodwill impairment recorded by U.S. public companies is on the rise. According to Duff & Phelps’ 2019 U.S. Goodwill Impairment study, it climbed 125 percent in 2018.

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SEC adds two deputy chief accountants

2019-12-04T18:29:00+00:00By

The Securities and Exchange Commission announced the additions of John Vanosdall and Paul Munter as deputy chief accountants in the accounting group and international department, respectively.

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New auditor reporting standards: What has changed

2019-12-03T17:45:00+00:00By

A closer look at new standards issued in May by the Auditing Standards Board will aid auditors in conferring with clients before 2020 reports arrive.

KPMG

SEC bars former PCAOB leader for role in KPMG scandal

2019-12-02T15:22:00+00:00By

The Securities and Exchange Commission has barred Cynthia Holder from practicing as an accountant before the Commission for her role in the long-running KPMG inspections scandal.

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SEC charges MiMedx Group with accounting fraud

2019-11-27T15:23:00+00:00By

Biotech company MiMedx Group and three of its former top executives have been charged with defrauding investors. In response, MiMedx reshuffled its management team, including the appointment of a new general counsel and secretary.

AccountingUpdateFeature

FASB finalizes tweaks to CECL standard

2019-11-26T16:13:00+00:00By

The Financial Accounting Standards Board has issued an update to the upcoming standard on credit losses that addresses negative allowances and expected recoveries.

PathForward

At rare open meeting, PCAOB says it’s on path to change

2019-11-22T16:01:00+00:00By

A recent PCAOB open meeting reviewed details about shareholder outreach and offered a view into its five-year strategic plan.

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Report: Investor confidence in audit committees high; more transparency needed

2019-11-19T21:13:00+00:00By

The 2019 Audit Committee Transparency Barometer indicated investor confidence in audit committee effectiveness was strong (81 percent) and had increased 10 percentage points since the first report was issued in 2014.

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Webcast: How to reduce audit burdens

2019-11-19T14:15:00+00:00Provided by

Accounting and audit teams are continually being asked to interact with and coordinate compliance initiatives on a more frequent basis. For organizations juggling multiple audits, such as SOX, operational audits, or financial reporting, information redundancy, competing deadlines, and large numbers of audit requirements quickly present challenges.

AccountingUpdates

What FASB’s recent updates might mean for you

2019-11-18T19:55:00+00:00By

The Financial Accounting Standards Board has issued updates to its standards on hedging and share-based payments and is offering guidance on reference rate reform.

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FASB finalizes standard delays, including CECL

2019-11-15T18:09:00+00:00By

The Financial Accounting Standards Board has finalized long anticipated delays in effective dates for several accounting standards, including the controversial rule on credit losses.

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Survey: Data use, security among top audit risk areas

2019-11-15T17:19:00+00:00By

Research and advisory firm Gartner has released its annual “Audit Hot Spots” report, which reveals the three top risk areas for internal audit teams and chief audit executives in 2020.

Oil

SEC investigating ProPetro’s financial disclosures

2019-11-14T19:25:00+00:00By

Oilfield services company ProPetro Holding announced the SEC has opened an investigation into its financial disclosures and reporting.

Blockchain

Internal control best practices for blockchain technology

2019-11-14T17:19:00+00:00By

Those in accounting who want to understand better the inherent risks, threats and vulnerabilities, and internal control best practices associated with the use of blockchain technology now have a first-of-its-kind framework to follow.

Accounting

Square discontinues adjusted revenue metric following SEC warning

2019-11-08T16:41:00+00:00By

Square is discontinuing the use of adjusted revenue following receipt of a comment letter from the SEC, which has been eyeing reports for use of measures not in compliance with its updated revenue standard.

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FRC review of IFRS 16 disclosures highlights weak spots

2019-11-07T17:22:00+00:00By

Companies applying the new standard on lease accounting need to provide more information on its effects, according to a new review by the U.K. Financial Reporting Council, which highlights where it expects companies to provide more comprehensive disclosure in their upcoming annual reports.

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Under Armour facing SEC, DOJ accountancy probes

2019-11-06T21:49:00+00:00By

Following disclosure of the federal government’s investigation into allegations of sales manipulation dating back to 2017, sports apparel company Under Armour maintains its accounting practices are “appropriate.”

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IFAC: Strong support for international accounting standards

2019-11-06T15:36:00+00:00By

A first-of-its-kind report from the International Federation of Accountants shows “strong and sustained support” for both the adoption and implementation of international standards.

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e-Book: Light at the end of the tunnel for lease accounting?

2019-11-06T04:00:00+00:00Provided by

New deadlines for the lease accounting standard have given companies more time to overcome implementation and adoption challenges.

ShowMeTheMoney

FRC reveals key trends in U.K. accountancy profession

2019-11-05T15:57:00+00:00By

A new report from the U.K.’s Financial Reporting Council says the Big Four increased their combined “total fee income” by 4.7 percent—even amid a year fraught with accounting scandal.

Sanctions

PCAOB sanctions Deloitte, BDO affiliates

2019-11-01T19:29:00+00:00By

The PCAOB, recently under fire for its lack of enforcement, has imposed sanctions on Deloitte Korea and BDO Mexico for altering audit documentation in anticipation of inspections.

Mattel

Mattel ousts CFO after accounting probe reveals weaknesses

2019-10-30T18:26:00+00:00By

Following an investigation spurred by a whistleblower letter, Mattel announced it has uncovered material weaknesses in its internal controls over financial reporting and is now working to remediate the issues.

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Big Four stranglehold on U.K. audit market widens

2019-10-29T20:18:00+00:00By

The Big Four’s dominance of the U.K. audit market has grown even further in the past year, according to the Financial Reporting Council’s latest report.

Gold

EY accused in U.K. gold-laundering scheme

2019-10-29T17:41:00+00:00By

Big Four audit firm EY has been accused of covering up evidence of smuggling by an organized crime gang that was laundering British drug money through gold dealings, according to an investigation by the BBC.