SOXexchange

US Auditor Concentration Study

Remember my comment about public companies in the US having too few choices in independent auditors?   The CEO of Grant Thornton (an accounting firm) apparently has similar thoughts.  Edward Nusbaum called for an auditor concentration study in the U.S., recognizing that "more accounting firms means greater competition and increases quality and lowers costs to the end user."

Proposal to Allow IFRS for SEC Filings

The SEC will propose to allow foreign issuers to file financial reports using either international financial reporting standards (IFRS) or U.S. generally accepted accounting principles (US GAAP).  Under current SEC rules, foreign private issuers that report in IFRS, or in any other non-U.S. standard, must reconcile their financial statements to US GAAP when filing reports with the commission.  The SEC's upcoming proposal would remove that requirement for foreign companies beginning in 2009.  If this does happen, it will be a huge step for foreign companies. 

The question US companies are asking is whether they can use IFRS instead of US GAAP.  If the SEC allows US companies to use IFRS, it will be a huge change for the public accounting industry.  CPAs with IFRS knowledge will be in great demand.

Continuous Monitoring

To lower SOX costs over time, you need to implement more continuous monitoring controls.  According to a study released on Monday by Onsight Systems Inc., many financial executives agree.  I see similar trends with our clients.

KPMG Sues Fannie Mae

It'll be interesting to see how the case between KPMG and Fannie Fae unfolds.  As a result of how the government treated Arthur Andersen (it filed bankruptcy before its fraudulent client, Enron, did), we now have a oligopoly of tier 1 accounting firms who serve publicly traded companies.  I seriously doubt that the government will harshly punish another Big 4 for fear that the firm will collapse.   As it is, there are too few choices in independent auditors for public companies now.  

Tribute to My Husband

I have to thank my husband for sending me on the path to reading my first blog ever, reading my first book about how to blog, and starting this blog. 

Back in February 2007, I asked him to find me some conferences to attend that would broaden my business knowledge and how I think about business.  The next day, he sends me a link to Invent Your Future.  This organization was holding its first conference that was targeted at nurturing women entrepreneurs.  The conference was fantastic because it had insightful sessions on 'you can do it and here are the ways'.