Hanson Talks About PCAOB Actions That May Affect Compliance Officers

PCAOB member Jay Hanson talked about advances in technology and the aftermath of the financial crisis in remarks at a May 23, 2011 Compliance Week conference. He said that changes in technology and business models have made it very difficult to understand today’s transactions and products. Valuing those products is hard for both issuers and […]

PLI Conference Panelists Discuss Auditing and Accounting Developments

Acting PCAOB Chair Daniel Goelzer was among the speakers at the Practising Law Institute’s securities regulation conference who addressed accounting developments of importance to the legal community. Goelzer advised that audit failures did not cause the financial crisis, nor could they have prevented the crisis. He suggested that issuers read the PCAOB’s report on auditing […]

PCAOB’s Dual Insulation From President’s Authority Violates Constitutional Separation of Powers

The U.S. Supreme Court has held that the PCAOB’s double layer of insulation from presidential removal of its members is an unconstitutional violation of the Separation of Powers doctrine. Board members are appointed by the SEC, which the Court said is constitutional, but their two separate layers of for-cause tenure protection restrict the President in […]

Financial Crisis and Transparency Discussed at First Meeting of PCAOB’s Investor Advisory Group

At the inaugural meeting of the PCAOB’s Investor Advisory Group, members discussed lessons learned from the financial crisis and the establishment of the PCAOB’s Financial Fraud Resource Center. The Fraud Center is being established in response to a recommendation from the Treasury Department’s Advisory Committee on the Auditing Profession (“ACAP”) and its primary objectives are […]

PCAOB Proposes New Standard on Communications With Audit Committees

The PCAOB has proposed a new auditing standard on communications with audit committees which would supersede interim standards AU sec. 380 and AU sec. 310. The proposed standard governs the communications that auditors must have with the audit committees of public company boards of directors. Acting Chair Daniel Goelzer said the proposed standard is intended […]

Industry Groups Ask Supreme Court to Overturn Ruling That IRS Can Obtain Tax Work Papers Done for Financial Statements

Financial industry groups have asked the U.S. Supreme Court to review a First Circuit Court of Appeals ruling that tax accrual work papers are discoverable by the IRS since they are done for SEC-mandated financial statements and not litigation. The groups have filed amicus briefs with the Court generally arguing that letting the decision stand […]

PCAOB Reproposes Standards on Assessing Risk for Additional Comment

The PCAOB has reproposed for comment seven auditing standards and related amendments on the requirements for assessing risk during an audit. The reproposed standards respond to the comment letters that were submitted on the initial October 21, 2008 proposal. The Board has described these standards as the foundation for future standard setting. The standards cover […]

Supreme Court Oral Argument in PCAOB Case Centers on SEC Control and Presidential Removal Powers

Oral arguments before the Supreme Court in the case deciding the PCAOB’s constitutionality focused on the SEC’s pervasive control over the Board and the President’s control over the SEC. The case, which was brought by an audit firm, is before the Court on a grant of certiorari of a split panel ruling of the D.C. […]