The PCAOB adopted two attestation standards relating to auditors’ examinations and reviews of broker-dealer compliance and examination reports and adopted an auditing standard for the audits of supplemental information that broker-dealers file with the SEC.

The preparation by broker-dealers of compliance or exception reports are new requirements that were added by the SEC when it

The PCAOB issued a policy statement regarding its enforcement investigations, in that it will consider extraordinary cooperation, including voluntary and timely self-reporting, remedial or corrective action, and providing substantial assistance during the investigative process.  This type of cooperation may result in reduced charges and/or sanctions.  The settlement documents may also indicate the cooperation, or there

Two Senators introduced a bill that would make disciplinary proceedings of the Public Company Accounting Oversight Board open to the public. 

According to the lawmakers, the Sarbanes-Oxley Act of 2002 made the PCAOB proceedings confidential through charging, hearings, initial decision, and appeal.  Unfortunately, the secretive nature of the process enables firms that engage in misconduct

In early December, the PCAOB issued a release indicating that accounting and auditing professionals need to be skeptical regarding their work.

The PCAOB is suggesting that professionals in the accounting and auditing profession must be critical of their oversight responsibilities with their clientele.  Regulators expect them to continue to exercise that skepticism in their judgments as

Accountants beware – prison lurks.

Recently, a certified public accountant and auditor was sentenced to 54 months in prison for his role in a nearly half-billion dollar investment scam that impacted over 3,500 investors.  In the sentencing, the court indicated accountants and auditors are gatekeepers of our financial system, and must protect that system and those who

We have repeatedly stated that auditors are significant players in today’s securities industry.  No other than the SEC has made this point on numerous occasions.  Recently, the SEC brought this fact home with the filing of administrative proceedings against two auditors.  See http://www.sec.gov/litigation/admin/2013/34-68605.pdf.

The SEC claimed these individuals failed to follow professional standards in

We have not talked about the Sarbanes-Oxley Act in sometime, so let’s jump right in!! 

Interestingly, over the last 10 years since Sarbanes-Oxley became effective, audit costs for public and private companies have increased significantly.  We recently came across a survey published by Financial Executives International, indicating, that these fees increased somewhat over the last 10 years. 

The SEC’s Chief Accountant announced that a number of companies may be unaware they fall under the disclosure requirement for Emerging Growth Company status under the JOBS Act. 

As a result of this status, the JOBS Act requires these companies to disclose such a status in their public filings with the SEC.  This disclosure and the resulting status

The SEC Enforcement Division’s chief accountant has gone on record as saying that, in every SEC accounting case, the SEC Staff reviews auditor conduct. 

The chief accountant stated that the SEC Staff looks at improper revenue recognition; understated expenses; financial crisis related accounting issues regarding loans and securities; as well as cross-boarder issues.  These reviews are done in conjunction