Peer Review strengthens a firm

Read this blog post from AICPA on peer review impact   http://blog.aicpa.org/2013/02/how-peer-review-strengthened-our-firm.html

Express Scripts sues E&Y

for theft of documents  http://online.wsj.com/article/SB10001424127887324616604578306650614568108.html?mod=djem_jiewr_AC_domainid

For discussion purposes in class, consider these posed by Reviewer Linda Christiansen, Indiana University Southeast
* QUESTIONS: *
1. (*Introductory*) What are the facts of this lawsuit? Who is the
plaintiff and who are the defendants? What is the issue in the case?

2. (*Advanced*) What is a "Big Four" accounting firm? What firms are in the
Big Four? What are all the various services offered by Big Four accounting
firms? How are Big Four firms different from other accounting firms? How
are they similar?

3. (*Advanced*) How can companies protect themselves from accountants and
consultants stealing confidential information and using it for other
purposes? In what ways can accountants and accounting firms be sanctioned
for such behavior?

4. (*Advanced*) The article states that Express Scripts uses three
different firms to do auditing work, tax, and consulting. Why would a
company use different CPA firms for different tasks? On the other hand, why
would a company use one firm for several tasks? With these factors in mind,
how should firms market their array of services?

Requests for Client records

This article highlights some of the issues surrounding requests for client records.   A CPA is well advised to be informed ahead of such requests so that actions are appropriate and do not create any kind of negative exposure for various reasons.  http://www.journalofaccountancy.com/Issues/2013/Feb/20126773.htm

Due Diligence is required with increased fraud risk

in U.S. companies doing business or considering acquistions of companies in China.   Many companies are seeing China as a way to growth.   A recognition of the risks inherent when operation in a different culture including awareness of differences in the culture's norms and ways of doing business and even the way auditing is done is an important consideration when considering risks.

This article discusses the  example last month involving Caterpillar's purchase of a Mining Company and resultant disclosure of over a half billion dollars writeoff.   This article is interesting as it discusses the "red Ferrari" test.   Check it out....what doesa red Ferrari test refer to? http://uk.reuters.com/article/2013/02/10/business-us-usa-accounting-china-caterpi-idUKBRE91908Q20130210

PCAOB makes deal with Finland

to conduct joint inspections and share data.   This article includes some of the status of other countries policies with inspection reports.    http://www.accountingtoday.com/news/PCAOB-Makes-Deal-Finland-Audit-Inspections-65594-1.html

PWC 2013 guide on questions for audit committees

This 16 page document downloadable from this site highlights questions for members of the audit committee  to ask throughout the year and at yearend.  http://www.pwc.com/us/en/cfodirect/publications/corporate-governance/year-end-audit-committee-questions-2013-edition.jhtml?display=/us/en/cfodirect/publications/corporate-governance