Auditing

The New York State Education Department’s Quality Review Oversight Committee approved on Feb. 8 the NYSSCPA as a sponsoring organization that may administer and oversee mandatory quality reviews in New York State.

The PCAOB has imposed a $2 million civil money penalty against Ernst & Young and sanctioned four of its current and former partners for violating board rules and standards, according to a Feb. 8 statement.

The Public Company Accounting Oversight Board announced yesterday that it would hold a two-day public meeting in March to receive input on auditor independence and audit firm rotation.

The International Auditing and Assurance Standards Board (IAASB) issued a release on Dec. 28 advising auditors "that the appropriateness of management’s use of the going concern assumption is a matter to be considered on every audit engagement."

In a Dec. 23 release, the U.S Government Accountability Office announced that it couldn't render an opinion on the federal government's 2011 consolidated financial statements. The GAO cited "widespread material internal control weaknesses, significant uncertainties, and other limitations."

1. Serious financial management problems at the Department of Defense (DOD) that made its financial statements unauditable.

The PCAOB today reproposed for comment an auditing standard on communications with audit committees, and other amendments to PCAOB standards. The Board initially proposed the standard on March 29, 2010.

Testifying in front of the senate, Jon Corzine of MF Global was asked if "we should reexamine the accounting treatment of repo-to-maturity transactions."

He replied: "To the extent that people believe that the disclosures that we made were not adequate, and they believe that more disclosure is better, that certainly should be considered." He continued: "I'm probably not the one who should speak to this--I'm certainly not an accounting expert.

Earlier this year, the Public Company Accounting Oversight Board (PCAOB) issued a 40-page concept release that explored ways it could enhance auditor independence, objectivity and professional skepticism. One option the release discussed in detail was mandatory audit firm rotation.

The Public Company Accounting Oversight Board has announced 28 new and reappointed members to its Standing Advisory Group (SAG), a team of experts that advises the board.