Peeling away financial reporting issues one layer at a time

Category for SOX

The Parable of the Good Big-Four-Congressman

U.S. Representative Scott Garrett (Republican, New Jersey) was first elected to Congress in 2002, months after the passage of the Sarbanes-Oxley Act.  A couple of weeks ago, he introduced legislation that would amend S-OX [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...]

The Financial Accounting Foundation Has Outlived Its Usefulness (As if it Ever Was)

Let’s pretend that we could decide anew how accounting standards for U.S public companies should be promulgated.  Who would want the operations to be run by the Financial Accounting Foundation?  Are there other [Read More...]

Could a Simple Spreadsheet Error Turn into Wall Street’s Watergate?

A couple of posts ago, I waded in on the infamous Reinhard & Rogoff spreadsheet error, in an attempt to extract lessons of a cautionary nature for accountants of public companies.

Since then, two interesting [Read More...]

Audit Firm Term Limits: Nothing Else Left to Try

This post more or less (actually somewhat more, than less) mirrors my answers to questions posed by Matt Kelly, editor of Compliance Week in a recent podcasted interview. The subject was audit firm [Read More...]

Less from Auditors Would be More

The Senate Subcommittee on Securities, Insurance and Investment has announced that it will meet this Wednesday to conduct a hearing entitled "The Role of the Accounting Profession in Preventing Another Financial Crisis."

[Read More...]

An IASB Member Unleashed

I can't cite chapter and verse for this, but experience tells me that there is a cardinal rule for IASB and FASB members that goes something like this: 'If you can't say something nice [Read More...]

Could Lehman’s Audit Committee Have Done Better?

I am, and have always been, a very reluctant user of pen and paper. Even on the rare occasion where I am sufficiently moved to take handwritten notes, they frequently end up to be [Read More...]

The Koss Fraud: Do Smaller Companies Need New Regulations or Better Old Regulations?

The Koss Corp. fraud case has been in the news since the end of December, so why am I just getting around to writing about it now? Because, that's the way I roll, man.

I [Read More...]

Sarbanes-Oxley and Smaller Reporting Companies: There is a Better Way

I apologize for the long interval between this and my last posting – especially to those of you who have privately thanked me for material just boring enough, and long enough, to induce a [Read More...]