A FASAB proposed standard would eliminate the requirement to report changes in certain receivables from the public as a resource on the statement of financing. Comments are due by June 8 ( www.financenet.gov/financenet/fed/fasab/pdf/ed_para80.pdf ). New FASAB guidance amends standards for direct loans and loan guarantees, effective for periods beginning after
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FYI
A commission of business and government leaders will propose ways to make the Social Security program more modern and fiscally sound ( www.ssa.gov/ssacommission.htm ). The SEC launches an online margin calculator that helps an investor estimate the likelihood of his or her broker’s issuing a margin call—for insufficient account equity—in
International
Canada’s securities regulator requests opinions on the pros and cons of allowing Canadian and foreign equity issuers to file financial statements according to U.S. GAAP or international accounting standards. Comments are due by June 30 ( www.iasc. org.uk/news/cen8_195.htm ). IFAC exposes a draft statement on strengthening the relationship between bank
Government
SEC to host roundtable discussions on regulating financial portals, global markets ( www.sec.gov/news/speech/spch465.htm ).
Technology
IASC issues list of terms to be used in XBRL-based financial reports ( www.iasc.org.uk/xbrl/index.html ).
Fraud
SEC crackdown on Internet securities fraud continues ( www.sec.gov/news/press/2001-24.txt ). SEC files suit against former CUC officers for filing allegedly false company income reports ( www.sec.gov/news/digest/02-28.txt ).
Banking
For news from the AICPA and state societies, visit www.cpaweb.org , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. Panel critiques Basel Committee’s proposed international capital standards for banks ( www.aei.org/shdw/shdw169.htm ). Draft IFAC standard focuses on roles of
Financial Reporting
FASB report recommends measures to lessen redundancies in GAAP, SEC disclosure requirements ( accounting.rutgers.edu/raw/fasb/news/nr030601.html ; accounting.rutgers.edu/raw/fasb/brrp/brrp3.html ). FASB offers guidance on accounting for transfers, servicing of financial assets ( accounting.rutgers.edu/raw/fasb/news/nr021501.html ). Corporate annual reports, disclosures to receive more SEC scrutiny ( www.sec.gov/news/speech/spch464.htm ). SEC to propose rule on electronic reporting
Timing Is of the Essence
hen companies get desperate to show earnings or reduce losses, sometimes they resort to fraudulent timing differences to show phony profits. By recognizing these often simple schemes CPAs can usually detect material financial statement frauds early, before they become catastrophic. There are five basic methods companies use to create bogus
Legal
BDO Seidman not liable under state law for its bankrupt audit client’s fraud, says New York Court of Appeals ( www.courts.state.ny.us/ctapps/decisions/11opn.pdf ).
FYI
SEC upgrades its Web site to include segment designed specifically for accountants ( www.sec.gov/news/press/2001-22.txt ). California state controller offers amnesty from interest due for unclaimed property ( www.sco.ca.gov/col/ucp/amnesty/index.htm ). Institute of Internal Auditors revises red book of standards, practice advisories ( www.theiia.org/ecm/guide-stand.cfm?doc_id=119 ). IFAC publishes acclaimed management accounting articles. Journal
International
IFAC issues public sector exposure draft on events that occur after the reporting date. Comments are due by May 31 ( www.ifac.org/Guidance/EXD-Download.tmpl?PubID=98044113798449 ). IFAC exposure draft addresses segment reporting for public entities. Comments are due by May 31 ( www.ifac.org/Guidance/EXD-Download.tmpl?PubID=980441403101013 ). Public sector disclosure of financial instruments is the subject
Government
Treasury to garnish delinquent borrowers’ SSA benefits ( www.ssa.gov/enews/debtpayment.htm ). Bush plan to invest SSA funds gives SEC commissioner pause ( www.sec.gov/news/speech/spch459.htm ).
Mergers And Acquisitions
FASB decides to end pooling-of-interests accounting method ( www.rutgers.edu/accounting/raw/fasb/news/nr012401.html ).
Technology
Privacy advocates petition legislators for their support on tough standards ( www.epic.org/privacycoalition/coalition_press_release.html ).
Fraud
Money launderers duping banks, says Senate report ( www.senate.gov/~gov_affairs/020501_psi_minority_report.htm ).
Professional Issues
New charter for Public Oversight Board increases its powers, staff and funding (not yet posted on POB Web site). Effective February 9.
Banking
Debt requirements set for banks with financial subsidiaries ( federalreserve.gov/boarddocs/press/boardacts/2001/20010119/default.htm ). OCC releases privacy obligations advisory for banks ( www.occ.treas.gov/ftp/advisory/2001-2.doc ). Survey shows that banks are raising their loan standards ( federalreserve.gov/boarddocs/snloansurvey/200102/fullreport.pdf ).
Employee Benefits
Labor department rule bolsters security of small pension plans ( www.dol.gov/dol/pwba/public/media/press/pr101900.htm ). Effective April 17.
Top 10 Audit Deficiencies
Editor’s note: The information contained in this article is specific to the auditing and assurance landscape on or about the date it was authored, including references to Generally Accepted Auditing Standards in effect at that time. To ensure you have the most recent and relevant information on audit and assurance issues,
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