Accounting standards

The New Mexico Public Accountancy Board has joined the Securities and Exchange Commission and the California Board of Accountancy in disciplining Ernst & Young over the firm's audits of former client PeopleSoft.

A study commissioned by the board of the International Federation of Accountants has issued a series of recommendations to the financial reporting "supply chain" in order to achieve convergence on global accounting and auditing standards.

Sanjay Kumar, the former chief executive of Computer Associates International Inc., was indicted on charges of securities fraud, conspiracy and obstruction of justice just as the company announced that it had reached agreements with the Department of Justice and the Securities and Exchange Commission in connection with an accounting scandal that caused it to restate $2.2 billion in revenue.

Troubled mortgage giant Fannie Mae said this week that a report on its accounting policies and practices uncovered serious issues that raised doubts about the validity of its previous financial results.

The California Board of Accountancy has sanctioned Ernst & Young over the firm's independence in its audit of former client PeopleSoft.

The number 1-800-TAXHELP may look good on a business card, but the concept of vanity telephone numbers has serious drawbacks for professional services firms, according to one consultant.Writing in The Urbach Letter e-newsletter, consultant Victor Urbach said that vanity numbers "have their place, particularly in radio advertising. But I believe their value is overrated." He adds that some studies have shown that full-alpha[betical] 800 vanity numbers actually reduce response rates. "They claim it's because people think they'll remember the number, and thus put off calling until later," he says. "In marketing, later often means never."

Securities and Exchange Commission chief accountant Donald T. Nicolaisen has asked KPMG LLP to correct a statement that he says the firm attributed to him in a letter it sent to clients.

The Securities and Exchange Commission is looking for qualified accounting professors to fill four available academic fellowships at its headquarters in Washington.

New York (Sept. 21, 2004) -- A trend among the nation's four largest accounting firms of dropping small audit clients reportedly has the Securities and Exchange Commission's chief accountant concerned.