January 31, 2005
Iraq Elections: A Major Statement
Iraqis and Americans have a lot to be proud of. The Iraqis showed incredible courage in going out to vote. They did this in the face of great physical danger - We as Americans are humbled by your courage. We are hopeful that you believe that there is a greater future with democracy. We are like minded with you: you want to be in charge of your own country and we want to go home.
So let's work together to get this incredible job done. We will assist you as you request and the sacrifices we have both made will have been worth while.
God blesses us all.
So let's work together to get this incredible job done. We will assist you as you request and the sacrifices we have both made will have been worth while.
God blesses us all.
January 28, 2005
Fold PCAOB into SEC?
Interesting concept to fold the PCAOB under the SEC after five years. Wasn't the thinking though that this should be separate, per Sarbanes-Oxley, so that not all power would be wielded by the SEC? They do a great job, but wouldn't it make more sense to have an organization who really understands the CPA industry focus there and be independent? Too much power in one place may not be a good thing.
An excerpt on this topic is here:
"Wallison Calls on Congress to Fold PCAOB
Washington (Jan. 28, 2005) - A critic from Washington-based think tank the American Enterprise Institute has called on Congress to terminate the Public Company Accounting Oversight Board within five years and fold the oversight body into the Securities and Exchange Commission.
In his recent paper, "Rein in the Public Company Accounting Oversight Board," AEI resident fellow Peter J. Wallison, former general counsel of the U.S. Treasury Department and White House counsel to President Reagan, urged Congress to "take steps to gain control of the PCAOB."
According to Wallison, "The simplest and most effective method would be to fold it into the SEC," with the board then serving as an advisory body on the development of rules and standards for auditing. "But at the outside, the board should be terminated within five years, the term of the board's members. In that period, it should be possible for the board to have made all the rules and established all the standards necessary to govern the business of auditing."
Click here for complete article.
To learn more about Sarbanes-Oxley Compliance Playbook(tm) click here www.issuescentral.com
An excerpt on this topic is here:
"Wallison Calls on Congress to Fold PCAOB
Washington (Jan. 28, 2005) - A critic from Washington-based think tank the American Enterprise Institute has called on Congress to terminate the Public Company Accounting Oversight Board within five years and fold the oversight body into the Securities and Exchange Commission.
In his recent paper, "Rein in the Public Company Accounting Oversight Board," AEI resident fellow Peter J. Wallison, former general counsel of the U.S. Treasury Department and White House counsel to President Reagan, urged Congress to "take steps to gain control of the PCAOB."
According to Wallison, "The simplest and most effective method would be to fold it into the SEC," with the board then serving as an advisory body on the development of rules and standards for auditing. "But at the outside, the board should be terminated within five years, the term of the board's members. In that period, it should be possible for the board to have made all the rules and established all the standards necessary to govern the business of auditing."
Click here for complete article.
To learn more about Sarbanes-Oxley Compliance Playbook(tm) click here www.issuescentral.com
January 26, 2005
Delay on Section 404 Being Considered for Foreign Filers
It is a tricky question for the SEC - do we have standards for our markets or not? We do not want to have many companies delist from our exchanges, but the fact is that the internal control work continues to highlight issues with how companies conduct business - not necessarily fraud but inadequate controls, nonetheless. One would be foolish to believe that only American companies would suffer from such problems. We all know fraud can be found in every country. So let's try to help European companies, but they have accessed US capital markets, so some rules must apply. A level playing field is important for fairness.
An excerpt on this development is here:
"The SEC remains committed to a level playing field for all its issuers, foreign and domestic alike," he said.
"But we recognize that cross-border listings frequently entail issuers having to navigate duplicative or even contradictory regulations in different jurisdictions. While the SEC is unwilling to compromise where investor protections are concerned, some duplicative or contradictory regulations can compromise those protections and place an unnecessary burden on issuers, firms and investors."
Donaldson said the SEC was seeking to be responsive to complaints, especially from European firms, about problems arising from the Sarbanes-Oxley requirements of special audits starting in 2005.
"To address these burdens, I have asked the staff of the Commission to consider whether to recommend that we delay the effective date of the internal control on financial reporting requirements for non-US companies," he said. " For the complete article, click here.
To learn more about how your company can rapidly and effectively comply with Sarbanes-Oxley, see www.issuescentral.com and find out more about Sarbanes-Oxley Compliance Playbook(tm).
An excerpt on this development is here:
"The SEC remains committed to a level playing field for all its issuers, foreign and domestic alike," he said.
"But we recognize that cross-border listings frequently entail issuers having to navigate duplicative or even contradictory regulations in different jurisdictions. While the SEC is unwilling to compromise where investor protections are concerned, some duplicative or contradictory regulations can compromise those protections and place an unnecessary burden on issuers, firms and investors."
Donaldson said the SEC was seeking to be responsive to complaints, especially from European firms, about problems arising from the Sarbanes-Oxley requirements of special audits starting in 2005.
"To address these burdens, I have asked the staff of the Commission to consider whether to recommend that we delay the effective date of the internal control on financial reporting requirements for non-US companies," he said. " For the complete article, click here.
To learn more about how your company can rapidly and effectively comply with Sarbanes-Oxley, see www.issuescentral.com and find out more about Sarbanes-Oxley Compliance Playbook(tm).
January 25, 2005
Principals Based Judgments are Uncharted Territory
CPA's are used to making judgments based on a calculation of risk called materiality. This has led to loop holes which follow the letter of the law but not the spirit. Robert Herz, Chairman of the Financial Accounting Standards Board, wants companies to follow principals not just rules. This calls for judgment that could be questioned in court. It also means that real ethical calls have to come in, not some arbitrary calculation that will account for a decision. Uncharted territory for those who have always followed rules but not the spirit of the law. Time for a change and a good one at that.
An excerpt of an article is here:
"Auditors afraid of making judgments, says FASB chief
By Andrew Parker in New York Jan 23 2005 18:49
Companies and their auditors are reluctant to exercise more judgment in work on accounts despite the Securities and Exchange Commission's call for a principles-based approach.
They fear challenges by regulators, lawyers or the media, according to the head of the body that writes US financial reporting rules.
The statement by Robert Herz, chairman of the Financial Accounting Standards Board, underlines the scale of the task if the US is to switch to a financial reporting regime based on principles rather than rules.
The SEC, the chief US financial regulator, published a report in 2003 that called on the US to ditch its tradition of complex accounting rules and adopt financial reporting standards rooted in principles." For the complete article, click here.
To find out how your company can follow Sarbanes-Oxley legislation, spirit and rules, in a cost effective manner, see www.issuescentral.com to tour the Sarbanes-Oxley Compliance Playbook(tm).
An excerpt of an article is here:
"Auditors afraid of making judgments, says FASB chief
By Andrew Parker in New York Jan 23 2005 18:49
Companies and their auditors are reluctant to exercise more judgment in work on accounts despite the Securities and Exchange Commission's call for a principles-based approach.
They fear challenges by regulators, lawyers or the media, according to the head of the body that writes US financial reporting rules.
The statement by Robert Herz, chairman of the Financial Accounting Standards Board, underlines the scale of the task if the US is to switch to a financial reporting regime based on principles rather than rules.
The SEC, the chief US financial regulator, published a report in 2003 that called on the US to ditch its tradition of complex accounting rules and adopt financial reporting standards rooted in principles." For the complete article, click here.
To find out how your company can follow Sarbanes-Oxley legislation, spirit and rules, in a cost effective manner, see www.issuescentral.com to tour the Sarbanes-Oxley Compliance Playbook(tm).
January 21, 2005
Silver Lining to Sarbanes-Oxley?
It seems that since the requirements of Sarbanes-Oxley were enacted, there has been an improvement in earnings projections. Maybe, there is more attention being paid to accuracy inside corporations. Public companies are now forced to review their processes and procedures with a fine tooth comb.
An excerpt on this topic is here:
Study: Sarbanes-Oxley May Be Improving Earnings Projections
Chicago (Jan. 21, 2005) - The Sarbanes-Oxley Act, along with the Securities and Exchange Commission's accelerated reporting guidelines, appear to be improving the accuracy of companies' earnings forecasts, according to a report by management consultancy firm Parson Consulting.
The percentage of companies among the Standard & Poors 500 stock index that missed analysts' earnings-per-share projections by at least 10 percent fell to 29.7 percent in the 2004 third quarter -- the lowest level since Parson began the quarterly study in the first quarter of 2003.
According to Parsons, the SEC accelerated reporting deadlines and federal Sarbanes-Oxley Act -- which shortened the timeframe in which companies must report their quarterly and annual earnings to the SEC, while demanding transparency and accuracy of financial information -- are having a beneficial effect. This need to report more quickly to the SEC is leading companies to streamline their processes and employ more sophisticated financial systems that improve the accuracy of forecasts, Parson experts say." Click here for the whole article.
To learn more about how your company can rapidly and cost effectively comply with Sarbanes-Oxley, see www.issuescentral.com and view the Sarbanes-Oxley Compliance Playbook(tm).
An excerpt on this topic is here:
Study: Sarbanes-Oxley May Be Improving Earnings Projections
Chicago (Jan. 21, 2005) - The Sarbanes-Oxley Act, along with the Securities and Exchange Commission's accelerated reporting guidelines, appear to be improving the accuracy of companies' earnings forecasts, according to a report by management consultancy firm Parson Consulting.
The percentage of companies among the Standard & Poors 500 stock index that missed analysts' earnings-per-share projections by at least 10 percent fell to 29.7 percent in the 2004 third quarter -- the lowest level since Parson began the quarterly study in the first quarter of 2003.
According to Parsons, the SEC accelerated reporting deadlines and federal Sarbanes-Oxley Act -- which shortened the timeframe in which companies must report their quarterly and annual earnings to the SEC, while demanding transparency and accuracy of financial information -- are having a beneficial effect. This need to report more quickly to the SEC is leading companies to streamline their processes and employ more sophisticated financial systems that improve the accuracy of forecasts, Parson experts say." Click here for the whole article.
To learn more about how your company can rapidly and cost effectively comply with Sarbanes-Oxley, see www.issuescentral.com and view the Sarbanes-Oxley Compliance Playbook(tm).
January 20, 2005
Internal Control Weaknesses Can Affect Company Financial Ratings
Fitch Ratings to take negative Section 404 rankings into account in their overall rating of public companies. Just another reason to make sure this work is done well and thoroughly.
An excerpt on this topic is here:
"Negative rating actions, if any, will be case-specific and may be in the form of a Rating Outlook revision, a Rating Watch Negative placement, or a downgrade, depending on the situation. Fitch's action will depend on whether the weaknesses in the company resulting in the statement have already been identified by Fitch, whether or not such weaknesses are already reflected in the ratings, and management's plans to remedy the situation.
Evaluating the reliability of financial data and assessing the internal controls over such data has always been an implicit part of Fitch's rating process. For example, serial restatements call into question financial reporting integrity. That said, Fitch places substantial reliance on a company's internal control framework and external auditors and regulators in determining that financial statements and disclosures accurately reflect a company's financial condition. " Click here for the complete article.
To learn how your company can do a thorough, effective and affordable Sarbanes-Oxley Section 404 project, click here www.issuescentral.com and learn more about Sarbanes-Oxley Compliance Playbook(tm).
An excerpt on this topic is here:
"Negative rating actions, if any, will be case-specific and may be in the form of a Rating Outlook revision, a Rating Watch Negative placement, or a downgrade, depending on the situation. Fitch's action will depend on whether the weaknesses in the company resulting in the statement have already been identified by Fitch, whether or not such weaknesses are already reflected in the ratings, and management's plans to remedy the situation.
Evaluating the reliability of financial data and assessing the internal controls over such data has always been an implicit part of Fitch's rating process. For example, serial restatements call into question financial reporting integrity. That said, Fitch places substantial reliance on a company's internal control framework and external auditors and regulators in determining that financial statements and disclosures accurately reflect a company's financial condition. " Click here for the complete article.
To learn how your company can do a thorough, effective and affordable Sarbanes-Oxley Section 404 project, click here www.issuescentral.com and learn more about Sarbanes-Oxley Compliance Playbook(tm).
January 18, 2005
IT Critical to Sarbanes-Oxley Success
IT managers are involved in SOX whether they thought so in the beginning or not. Security and fraud prevention are key responsibilities in IT. They are also key to an effective Sarbanes-Oxley review.
An excerpt from an article on this topic:
"Put another way, your job will be to document IT processes for computer operations, application development and maintenance, change control, as well as access to programs and data.
...Once the team finishes documenting the company's processes, it's time to start the identifying control activities and assessing control design, control effectiveness, and anti-fraud controls. To help wrap your brain around the meaning of those controls, here's a brief overview of assessment and testing.
The assessment and testing process is a two-step course of action. Test plans can only be created after control activities have been identified. At the outset, a company needs to identify its objectives, risks, and control activities for each process.
After the company's objectives are identified, IT can create test plans to assess the effectiveness of these control activities." For the complete article, click here.
For help in your Sarbanes-Oxley review project, see www.issuescentral.com to learn more about Sarbanes-Oxley Compliance Playbook(tm).
An excerpt from an article on this topic:
"Put another way, your job will be to document IT processes for computer operations, application development and maintenance, change control, as well as access to programs and data.
...Once the team finishes documenting the company's processes, it's time to start the identifying control activities and assessing control design, control effectiveness, and anti-fraud controls. To help wrap your brain around the meaning of those controls, here's a brief overview of assessment and testing.
The assessment and testing process is a two-step course of action. Test plans can only be created after control activities have been identified. At the outset, a company needs to identify its objectives, risks, and control activities for each process.
After the company's objectives are identified, IT can create test plans to assess the effectiveness of these control activities." For the complete article, click here.
For help in your Sarbanes-Oxley review project, see www.issuescentral.com to learn more about Sarbanes-Oxley Compliance Playbook(tm).
January 14, 2005
Nortel Makes News Again
Just when you think Nortel has reported all its bad news, there seems to be more. It is clear that this situation is so complex that even those with the best intentions have been embarrassed. But come on, when compensation plans encourage certain numbers, we all know what human nature does. Is this company going to make it or not?
When management becomes so consumed in trying to root out problems in accounting and reporting, one wonders if there is bandwidth to grow the company and stay in business.
An excerpt on the latest woes is here:
"By October 2003 enough information was in to indicate that Nortel's balance sheet indeed required repair. Dunn revealed that the company's liabilities had been over-stated by nearly $1 billion and blamed the "volatile environment" for the errors. He assured investors that he would provide re-statements for the 42-month period ended June 30, 2003, as soon as possible...
According to the SEC filing, D&T did not report material deficiencies in Nortel's accounting until Nov. 18, 2003, as part of its interim audit for calendar year 2003. A material weakness, in accounting terms, involves internal controls that allow significant errors that are difficult to detect.
At this point, the red flags should have been flying high. Yet, late in January 2004, Dunn triumphantly told investors that Nortel had scored big profits for the quarter just ended. A few days later, Nortel's top executives received $27.3 million U.S. worth of restricted stock units, part of a bonus program tied to company earnings. (The cash portion, about $8.5 million U.S., is now being returned.) It would take a few more weeks before the board received evidence that led it to fire Dunn and his finance executives." For the entire article, click here.
To lead an effective and transparent compliance effort in your company, visit our website at www.issuescentral.com and learn more about Sarbanes-Oxley Compliance Playbook(tm).
When management becomes so consumed in trying to root out problems in accounting and reporting, one wonders if there is bandwidth to grow the company and stay in business.
An excerpt on the latest woes is here:
"By October 2003 enough information was in to indicate that Nortel's balance sheet indeed required repair. Dunn revealed that the company's liabilities had been over-stated by nearly $1 billion and blamed the "volatile environment" for the errors. He assured investors that he would provide re-statements for the 42-month period ended June 30, 2003, as soon as possible...
According to the SEC filing, D&T did not report material deficiencies in Nortel's accounting until Nov. 18, 2003, as part of its interim audit for calendar year 2003. A material weakness, in accounting terms, involves internal controls that allow significant errors that are difficult to detect.
At this point, the red flags should have been flying high. Yet, late in January 2004, Dunn triumphantly told investors that Nortel had scored big profits for the quarter just ended. A few days later, Nortel's top executives received $27.3 million U.S. worth of restricted stock units, part of a bonus program tied to company earnings. (The cash portion, about $8.5 million U.S., is now being returned.) It would take a few more weeks before the board received evidence that led it to fire Dunn and his finance executives." For the entire article, click here.
To lead an effective and transparent compliance effort in your company, visit our website at www.issuescentral.com and learn more about Sarbanes-Oxley Compliance Playbook(tm).
January 13, 2005
Lobbyists Contest Legitimacy of Sarbanes-Oxley for Smaller Firms
Since the first deadlines for larger companies have finally passed, now the attention is turned to smaller firms regarding the question of appropriateness of Section 404 to smaller companies. The problem is that if you decide to access public markets, then market cap should not matter. Maybe there should be a two year ramp for smaller companies. This way they can access the public markets and become larger before they comply. But if they are fully exempted, this would create loopholes that no doubt would be accessed by larger companies.
An excerpt on this topic is here:
"The group argues that while the provision is appropriate for firms of 250,000 workers, its intentions are mislaid when it comes to businesses employing just 250 people. The cost of maintaining such controls can reach a staggering $500,000 per year, according to a study by CFO magazine. The lobbying group argues the cost, which includes the retention of auditors, is beneficial to the accounting industry, but excessive for small public companies." For the full article, click here.
If your company is small to mid sized, learn more about rapid and effective Sarbanes-Oxley compliance at www.issuescentral.com
An excerpt on this topic is here:
"The group argues that while the provision is appropriate for firms of 250,000 workers, its intentions are mislaid when it comes to businesses employing just 250 people. The cost of maintaining such controls can reach a staggering $500,000 per year, according to a study by CFO magazine. The lobbying group argues the cost, which includes the retention of auditors, is beneficial to the accounting industry, but excessive for small public companies." For the full article, click here.
If your company is small to mid sized, learn more about rapid and effective Sarbanes-Oxley compliance at www.issuescentral.com
January 12, 2005
EU Trying to Get a Handle on Corporate Governance
Everyone complains about Sarbanes-Oxley, but it has forced change around the world in corporate governance. No one wants to be transparent because they just do not want to tell everything. But one by one, countries are tackling this issue. If you do not tackle it, it definitely promotes the image that you have something to hide. Change is not easy, but in this area, very necessary.
An excerpt from a publication in the UK discusses this topic:
In total, Korn/Ferry put the total cost for US businesses alone of Sarbanes-Oxley compliance at more than $5bn per year.The prescriptive nature of the demands also rankle with European companies. In the UK, the combined code on corporate governance that was updated in 2003 uses a ‘comply or explain’ approach, realising that one set of rules cannot be universally applied across all companies. This is something that Europeans find much easier to swallow....
The EU appears to have stepped back from imposing a blanket form of Sarbanes-Oxley across all member states and prefers to let individual countries put their own legislation in place. However, Frits Bolkenstein, the EU commissioner for the internal market, has put forward a number of proposals for improving corporate governance. These include bolstering auditors’ independence, tackling off-balance sheet financing, providing greater transparency into executive pay and forcing companies to make statements about the standards of corporate governance used in their firms." For the complete article, click here.
To begin action on Sarbanes-Oxley at your firm, find out more at www.issuescentral.com about Sarbanes-Oxley Compliance Playbook(tm). Rapid. Affordable Compliance.
An excerpt from a publication in the UK discusses this topic:
In total, Korn/Ferry put the total cost for US businesses alone of Sarbanes-Oxley compliance at more than $5bn per year.The prescriptive nature of the demands also rankle with European companies. In the UK, the combined code on corporate governance that was updated in 2003 uses a ‘comply or explain’ approach, realising that one set of rules cannot be universally applied across all companies. This is something that Europeans find much easier to swallow....
The EU appears to have stepped back from imposing a blanket form of Sarbanes-Oxley across all member states and prefers to let individual countries put their own legislation in place. However, Frits Bolkenstein, the EU commissioner for the internal market, has put forward a number of proposals for improving corporate governance. These include bolstering auditors’ independence, tackling off-balance sheet financing, providing greater transparency into executive pay and forcing companies to make statements about the standards of corporate governance used in their firms." For the complete article, click here.
To begin action on Sarbanes-Oxley at your firm, find out more at www.issuescentral.com about Sarbanes-Oxley Compliance Playbook(tm). Rapid. Affordable Compliance.
January 07, 2005
Finally, Accountability from the Feds - After all it is our money!
Finally, we get to see some controls within the operations of our own federal government. This is necessary and appropriate given the problems with bureacracy and money. This is our money and there should be proper controls on spending.
Excerpt from an article here:
BY David Perera Published on Jan. 6, 2006
Office of Management and Budget officials released late December a document detailing a set of tighter financial controls federal agencies must implement by the start of the next fiscal year.
The new regulations, found in a revised version of OMB Circular A-123, parallel some of the private-sector internal management strictures created by the Sarbanes-Oxley Act of 2002. The changes intend to strengthen the credibility of the annual agency management assessments of financial status the government is required to produce under the Federal Managers' Financial Integrity Act. Those assessments will now be due 45 days after the end of the fiscal year, the revised circular states. For the complete article, click here.
To learn more about effective implementation of internal controls and Section 404, see Sarbanes-Oxley Compliance Playbook(tm) at www.issuescentral.com
Excerpt from an article here:
BY David Perera Published on Jan. 6, 2006
Office of Management and Budget officials released late December a document detailing a set of tighter financial controls federal agencies must implement by the start of the next fiscal year.
The new regulations, found in a revised version of OMB Circular A-123, parallel some of the private-sector internal management strictures created by the Sarbanes-Oxley Act of 2002. The changes intend to strengthen the credibility of the annual agency management assessments of financial status the government is required to produce under the Federal Managers' Financial Integrity Act. Those assessments will now be due 45 days after the end of the fiscal year, the revised circular states. For the complete article, click here.
To learn more about effective implementation of internal controls and Section 404, see Sarbanes-Oxley Compliance Playbook(tm) at www.issuescentral.com
January 04, 2005
Analyst Coverage Slim to None for Smaller Public Companies
When risk is high, those clients who are relatively obscure, tend to stay that way. Analyst coverage is extremely difficult to obtain these days. Analysts look at the risk/reward formula and determine that small clients offer extreme risk without much upside.
An excerpt on this growing issue here:
"Paul Mueller said in a filing with the SEC that costs associated with being a public company "far outweigh" any benefits. NASDAQ has halted trading in the company until it has supplied the exchange with more information.
Paul Mueller also cited the absence of analyst coverage for companies of its size and business following the recent analyst shrinkage after the investment banking scandals. Most public companies are no longer covered by analysts, giving rise to standards-based independent research providers such as those who belong to the FIRST Research Consortium (http://www.firstresearchconsortium.com), and various non-standards providers." For the complete article, click here.
For more information about how your company can rapidly and effectively comply with Sarbanes-Oxley, see www.issuescentral.com or call (416) 977-1496.
An excerpt on this growing issue here:
"Paul Mueller said in a filing with the SEC that costs associated with being a public company "far outweigh" any benefits. NASDAQ has halted trading in the company until it has supplied the exchange with more information.
Paul Mueller also cited the absence of analyst coverage for companies of its size and business following the recent analyst shrinkage after the investment banking scandals. Most public companies are no longer covered by analysts, giving rise to standards-based independent research providers such as those who belong to the FIRST Research Consortium (http://www.firstresearchconsortium.com), and various non-standards providers." For the complete article, click here.
For more information about how your company can rapidly and effectively comply with Sarbanes-Oxley, see www.issuescentral.com or call (416) 977-1496.
January 03, 2005
PCAOB Slows Hiring
The very legislation that created the agency, has caused a great deal competition for the talent needed to run this agency. The PCAOB cannot find enough people to fill positions at the salaries it is offering. It is a good thing that the public companies do not rely on this agency to do their audits. But then again, many smaller public companies cannot afford the new audit fees because of the decrease in firms who want to work with small companies. It is fascinating to see the cascade of consequences from this legislation. Keep watching....more to come.
For an excerpt on the PCAOB, read here:
"U.S. accounting watchdog slashes budget
THE ASSOCIATED PRESS
WASHINGTON -- The U.S. accounting watchdog has voted to cut its 2005 budget by more than 10 percent, to $136.1 million, mainly because of difficulties in hiring workers.
The Public Company Accounting Oversight Board also said it may consider raising salaries in order to attract workers as competition for experienced auditors intensifies.
Thursday's budget cut comes just two months after the board approved a $152.8 million budget for 2005 amid expectations that it would start the year with 300 employees. Instead, the audit-oversight board will begin the new year with 262 staffers, reducing the chances of meeting projections for 450 employees by the end of 2005." For complete article, click here.
To learn more about how your company can comply with Section 404 and more, see www.issuescentral.com to get a 30 day free trial of Sarbanes-Oxley Compliance Playbook(tm)
For an excerpt on the PCAOB, read here:
"U.S. accounting watchdog slashes budget
THE ASSOCIATED PRESS
WASHINGTON -- The U.S. accounting watchdog has voted to cut its 2005 budget by more than 10 percent, to $136.1 million, mainly because of difficulties in hiring workers.
The Public Company Accounting Oversight Board also said it may consider raising salaries in order to attract workers as competition for experienced auditors intensifies.
Thursday's budget cut comes just two months after the board approved a $152.8 million budget for 2005 amid expectations that it would start the year with 300 employees. Instead, the audit-oversight board will begin the new year with 262 staffers, reducing the chances of meeting projections for 450 employees by the end of 2005." For complete article, click here.
To learn more about how your company can comply with Section 404 and more, see www.issuescentral.com to get a 30 day free trial of Sarbanes-Oxley Compliance Playbook(tm)
