November 15, 2010

Study: Six Years After Section 404’s Internal Controls

Audit Analytics continues to do good work and their recent study based on six years worth of enhanced internal controls under Section 404 of Sarbanes-Oxley is no exception. In short, the study found:

– The percentage of adverse auditor attestations has declined every year for 5 years and is down to 2.4% for Year 6.

– Likewise, for Year 6, the percentage of adverse management-only assessments was the lowest – but this rate was about 10x higher than the rate experienced by companies required to file auditor attestations.

We have posted this study in our “Internal Controls” Practice Area.

As a community that flies often, you should take 10 seconds to sign this online petition against the new invasive body searches being conducted at our airports (when I signed it last night, I was #300 – now it’s over 28k). “Signing” just requires you to input your name and email address – no other contact information is required. Here is a WaPo article about the new searches – they are very personal and shocking.

New Standards for Comfort Letters? AICPA Makes a Proposal

I’m catching up on some draft blogs that need to belatedly come to “life.” Back in July, the Auditing Standards Board of the AICPA – in this Exposure Draft – proposed auditing standard to replace SAS 72 on comfort letters. Thanks to Bob Dow of Arnall Golden Gregory for reminding me of this development.

IFRS Status: FASB and IASB Seek Input

Recently, the FASB and IASB issued a 21-page discussion paper requesting input about the effort it will take them to adopt the convergence projects that are underway, including transition methods, whether adoption of new standards should occur at the same time or over a number of years and whether different effective dates would be appropriate for different entities. Comments are due January 31st. We have posted memos regarding this development in our “IFRS” Practice Area.

– Broc Romanek