Auditing

A measure that would subject the U.S. Federal reserve to a full and complete audit by the Government Accountability Office (GAO) passed the House Financial Services Committee on Thursday, 43-26, as an amendment to the larger financial reform legislation.

Dow Jones newswires interviewed Lou Grumet, NYSSCPA executive director, following the announcement that Bernard Madoff’s auditor David Friehling pleaded guilty.

The U.S. Supreme Court is scheduled to begin hearing oral arguments in a case that questions the constitutionality of the Public Company Oversight Board (PCAOB) on Dec. 7, according to the Supreme Court docket.

The smallest publicly reporting companies will have to begin complying in nine months with the final portion of a key provision of a law that requires companies to report to the public about the effectiveness of their internal control over financial reporting, the Securities and Exchange Commission (SEC) said in a press release.

New York State Comptroller Thomas P. DiNapoli has completed an audit of the New York City Department of Health's flu pandemic preparedness, in which auditors noted that some of the department’s planning activities were not documented and inventory controls over face masks needed strengthening.

A number of state government agencies were audited by DiNapoli's office and improvements were recommended across the board:

Gov. David A. Paterson is set to reject a sweeping overhaul of the state’s hundreds of public authorities that was passed by lawmakers last month but is opposed by the governor’s staff and Mayor Michael R. Bloomberg, according to the New York Times.

The Paterson administration will ask the Assembly to delay sending the bill to the governor’s desk, officials told the Times, and will try to craft new reform legislation before a special legislative session next month.

Like most other divorces, the breakup of McGladrey & Pullen and H&R Block is getting ugly -- already, there's a strong response from Block CEO Russ Smyth and a pending lawsuit from the company.

From Smyth's statement:

The lengthy relationship between embattled H&R Block and McGladrey & Pullen, the fifth largest accounting firm in the New York area, has soured. The latter has issued formal notice of intent to terminate its contract with H&R Block. While McGladrey & Pullen’s audit practice is an independent, partner-owned firm, related professional services have been offered through RSM McGladrey under an agreement with H&R Block.

The NYSSCPA continued its efforts to reach all CPAs affected by the new accounting reform law at JPMorgan Chase in lower Manhattan this morning.

A group of CPAs -- including at least one from out of state -- and CPA candidates came together to get information about the new law from Society leaders.

The session participants also earned two CPE credits for attending.

At left, four of JPMorgan Chase's accountants pay close attention as NYSSCPA Executive Director Lou Grumet speaks about the law's provisions.

Happy Regulations Day!

The New York State Board of Regents is preparing right now to vote on the proposed regulations that will define the requirements of the accounting reform law that goes into effect next month.

WebCPA talked to NYSSCPA President David Moynihan as the clock ticked down to that important decision, and in a brief story Moynihan outlines the provisions of the new law and what CPAs should expect.

A wealth of knowledge is also available on the NYSSCPA's Web site. Get general information on the law, read the proposed regulations and review a special issue of The Trusted Professional dedicated to the legislation. Or ask a question.