Accountants : Fraud

Accountants

Greater Use of SEC Enforcement Tool Against Accounting Firms Has Important Consequences for Companies
Michael J. Halloran of Pillsbury Winthrop Shaw Pittman LLP

The recent spate of high profile financial scandals and their effect on the U.S. economy may compel the SEC to use a rarely invoked, but powerful, enforcement tool against accounting firms. Section 10A of the Securities Exchange Act of 1934 (the Act), as amended, requires accounting firms to utilize audit procedures designed to detect illegality and to bring material illegal acts they detect during the course of an audit to the attention of senior management and the company's audit committee.
SEC Publishes Proposed PCAOB Rules For Funding
Morrison & Foerster LLP

On June 23, 2003 the Securities and Exchange Commission (the ÃÂSECÃÂ) published for public comment the funding proposal of the Public Company Accounting Oversight Board (the ÃÂBoardÃÂ), which was created by the Sarbanes-Oxley Act of 2002 (the ÃÂActÃÂ).