December 20, 2006

PCAOB’s Internal Controls Proposal: Farewell AS #2; Hello AS #5?

Yesterday, the PCAOB proposed a new 131-page standard that would supersede Auditing Standard No. 2. Here is the related press release and briefing paper – and here is a statement from SEC Chairman Cox and Chief Accountant Hewitt. The proposal has a 70-day comment period.

As the FEI’s “Section 404 Blog” notes in its summary of the PCAOB’s action yesterday: One board member referred to the proposed rule as “AS5,” although standards are not assigned numbers until final. So perhaps it’s farewell old AS #2, we knew you more than we ever cared to…

Forensic Accounting for Non-Experts

In this podcast, Howard Silverstone of Forensic Resolutions, and a co-author of a recent book “Forensic Accounting and Fraud Investigation for Non-Experts,” helps to explain the basics of forensic accounting, including:

– What forensic basics should in-house lawyers have a handle on to help prevent fraud?
– What are some examples of how lawyers can spot accounting fraud trouble?
– What types of documentary evidence should lawyers be looking for?
– If a lawyer spots trouble, how can they determine whether their CFO or someone else in the Controller’s office may be involved?

Another Proxy Advisor Sold: Glass Lewis

On the heels of ISS being sold last month, rival proxy advisor Glass Lewis is being acquired by Xinhua Finance, a Chinese financial media company. At the end of summer, Xinhua purchased an initial 19.9% of Glass Lewis and now plans to purchase the remaining 80.1% in early 2007. Given the influence of ISS and Glass Lewis on voting issues, these deals are noteworthy…