X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
The accounting cop is now on the beat. In May the Public Company Accounting Oversight Board began examining the firms that audit public companies. Inspections for 2004 should be completed by November. The board was created by Congress two years ago as part of the Sarbanes-Oxley Act. It will review about 5 percent of public company engagements by the Big Four accounting firms, which equates to about 500 audits. It also will examine about 10 � 15 percent of engagements at midsize firms, and review the audits completed by a select number of small firms. Sarbanes-Oxley requires the oversight board to inspect big accounting firms annually and smaller ones at least every three years. Besides detecting fraud, the inspections will also monitor the adequacy of the firms’ documentation, how auditors assess risk, and their compliance with professional auditing and accounting standards. Inspectors also will focus on whether compensation and other business practices discourage accountants from uncovering fraud. As of early May, 840 accounting firms had registered with the board, including 805 domestic and 18 Canadian auditors, and 17 from elsewhere. All foreign auditors that have a hand in crafting financial statements or doing any accounting work at a company listed on a U.S. stock exchange must register with the board.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.