FMC’s PTO Pranks

Yesterday, the SEC announced a $2.5 million penalty to settle charges against two former officers of Houston-based FMC Technologies. The pair had manipulated accruals of personal time off – PTO – liabilities to improve the appearance of performance at one of the company’s segments, among other flawed accounting practices. According to the Accounting & Auditing…

The SEC Sends A Message To Auditors

And the message is: Our patience has been tested enough. Yesterday, the SEC Enforcement Division announced an $11.8 million settlement with Ernst & Young over flawed audits of Weatherford International over a four-year period. Two partners have been suspended from public practice. What’s unsettling: according to the Accounting and Auditing Enforcement Release, Ernst & Young…

What Do You Want In Your Financial Reporting? FASB Wants To Know

In August, the FASB issued an Invitation to Comment on their agenda. Of course, anyone can comment on their agenda at any time – but this Invitation to Comment is structured into four different subtopics. The Board has finally finished its “mega-projects” like leasing, financial instrument credit impairment, and revenue recognition. It’s looking for other…

PCAOB’s New Audit Report Proposal

In case you missed it: in May, the Public Company Accounting Oversight Board issued a new proposal for modifying the auditor’s standard report. It’s the latest iteration in a long-running project to make the auditor’s report a little more than an expensive rubber stamp on the financial statements. (If you don’t agree the audit report…

Pondering the SEC’s Next Move on Non-GAAP: Thoughts From Audit Analytics & The Analyst’s Accounting Observer

Our friends at Audit Analytics, who do some really great work with audit and accounting firm data, compiled data on SEC comment letters sent to companies on their non-GAAP earnings presentations in recent years. We put our heads together to surmise what might lie ahead when the SEC’s Division of Corporation Finance makes good on…

Scoring Many Ways At comScore

Yesterday’s Wall Street Journal featured two articles in the Money & Investing section that go together like peanut butter and chocolate. (And neither one had to do with Hershey.) In the first article, “Heard On The Street’s” Miriam Gottfried penned a feature about comScore’s “squishy math” in the firm’s calculation of achieving stock price targets…

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