Peeling away financial reporting issues one layer at a time

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Accounting Estimates: What Investors Should Want

Last week, the PCAOB convened its Standing Advisory Group to discuss the topic of auditing accounting estimates and fair values.  I was invited to be on a panel providing investors’ perspectives.*

This post mainly consists [Read More...]

Look Beyond the Firms for the Root Causes of Audit Deficiencies*

The International forum of Independent Audit Regulators (IFIAR) has published its second annual survey of audit inspections of the Big Four plus BDO and Grant Thornton firms around the world:

“The leading areas of [Read More...]

One Shouldn’t Have to be an Auditor to Understand an Audit Report

The PCAOB* has proposed a new standard to make the auditor’s report more informative.  If finalized in its present form, it would provide more and/or better information concerning the following:

Critical audit matters (as determined [Read More...]

The FRF for SMEs is a “Sack of Mush” — According to Walter Schuetze

Shortly after my most recent post on the AICPA’s new FRF for SMEs,  NASBA issued a press release that was clearly intended to keep the public spat between the two national organizations [Read More...]

The AICPA’s Financial Reporting Framework: How Low Should a Professional Go?

The AICPA, in its spat with NASBA over its recently released Financial Reporting Framework for SMEs (my very own critique is here), has loudly and often declaimed that the purveyors of GAAP [Read More...]

NASBA Blackballs AICPA from the Standard Setters’ Club

I have generally considered the developments regarding accounting standards for private companies over the past couple of years to be distractions from my focus on public company financial reporting.  But it has come to [Read More...]

Do Survey Results Mean that External Audits Don’t Protect Against Earnings Manipulation? (What a Surprise!)

The results of a recent E&Y survey investigating financial manipulation must stun even the most cynical observers of accounting practice,:

Of the board members and senior management surveyed from companies in Europe, Middle East, India [Read More...]

HP’s Autonomy Debacle: Mistakes were Made — and Capitalized?

Companies overpay to acquire other companies all the time; but Hewlett Packard Co. just might be the new record holder for getting fleeced. I don't have the exact amount, but let's say [Read More...]

Why Nothing Sticks to Auditors when Loans Go Bad

I read numerous news sources this week echoing the SEC's announcement that it finally has a case it thinks it can win against auditors stemming from the 2008 financial crisis. One journalist, [Read More...]

Pick a Number: Anything but Market for Loan Accounting (Part 2)

In response to my previous post, Edith Orenstein (author of the FEI blog and fellow Ohio State alum) asked me whether I preferred the status quo "incurred," or the proposed "expected" [Read More...]