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Cover
Story
Off-Balance
Sheet Financing The Accounting Road Map
-- Ch Rajeshwer and A
Sowdeepti
While
the use of off-balance sheet entities proliferated in the
past two decades, the US GAAP could not catch up. That made
them a fertile ground for corporate malfeasance. Enron took
it to the extreme by hiding huge level of debt. FIN 46, the
latest from FASB on the subject, aims to bridge the gap.
© IUP. All Rights Reserved.
Corporate
Amerco's
Bankruptcy : The Accounting Blame Game
-- Amit Singh Sisodiya
The
US truck rental company is paying a heavy price for the fault
of its auditor PwC. This raises a serious concern whether
`error of judgment,' which killed Andersen, is spilling over
to the rest of the Big Four.
© IUP. All Rights Reserved.
Technology
Continuous
Auditing :
Leveraging Technology
--DeWayne
L Searcy and Jon B Woodroof
After
a decade of relative neglect, continuous auditing is catching
the attention of auditing industry. While corporate wrongdoing
in America has increased its relevance, because of its potential
benefits that range from reducing audit wastages to real-time
audit reports, rapid improvement in technology has made it
more feasible.
©
The CPA Journal, May 2003 (www.cpajournal.com). Reprinted
with permission.
Data
Mining and the Auditor's Responsibility
-- Bob
Denker
The
auditing software tools, that at best can help internal auditors
to perform their routine operations, fail to support the fundamental
shift in audit methodology required in present times. Auditors
have to perform all the analytics by themselves, as no software
can replace the analytical process that auditors are responsible
for. However, data mining that distills hidden knowledge in
voluminous data can help to detect frauds.
©
2003 Information Systems Audit and Control Association (www.isaca.org).
Reprinted with permission.
Governance
& Ethics
Does
Disclosure Matter? -- Denis
Cormier and Michel Magnan
Against
the background of growing distrust of corporate reporting,
environmental reporting can enhance a company's reputation
as a quality disclosure and help augment investor confidence.
However, companies have to trade off the costs of disclosing
potentially damaging information with the potential advantages
of an expanded disclosure.
©
Reproduced with permission from CA magazine, published by
the Canadian Institute of Chartered Accountants, Toronto,
Canada (www.camagazine.com).
Accounting
Standards : Technical Note
IAS
39 - Time for Preparation -- Martin
Reilly
IAS
39, the new accounting standard that deals with recognition,
measurement and disclosure principles of financial instruments
that aims to reduce the inconsistency in the way financial
instruments are accounted for, is bound to affect the way
financial risks are managed.
©
Deloitte & Touche (www.deloitte.com). Reprinted with permission.
Accounting
Standards
IAS
19: Catalyst for Change? -- Eric
J Elbert and Ruud Kistemaker
Many
European multinationals lack interest in the postemployment
benefit plans of their overseas subsidiaries. But as EU prepares
to adopt IAS by 2005, companies would be forced to have a
global employee benefit policy in place; otherwise, they risk
increasing their balance sheet volatility under IAS 19.
©
Pension Publications Limited, London, England. Reproduced
with permission of the copyright owners from Benefits &
Compensation International Magazine, Vol. 32, No. 2, September
2002 (www.benecompintl.com).
The
Prodigal's Books: Securitization
Accounting Put to Serious Questions
-- Vinod
Kothari
Securitization
accounting is under fire. The problem lies with the basis
of securitization process that requires guesswork, besides
regulatory loopholes and auditing mistakes. The author supports
his point by citing the example of Superior Bank.
©
Vinod Kothari (www.vinodkothari.com). Reprinted with permission.
Auditing Internal
Audit: Active Ingredient in Reform Mix
--Cynthia
Waller Vallario
With
the spate of accounting scandals shaking the auditing profession,
internal auditing is no more a mere element of good corporate
governance, but a strategic partner and an equal constituent
of corporate oversight that can help organizations in meeting
corporate reporting challenges in the light of increased regulatory
scrutiny.
©
Financial Executives International, June 2003 (www.fei.org).
Reprinted with permission.
The
New Rules of Engagement -- David
M Katz and Craig Schneider
The
sudden collapse of Andersen has not only kept the regulators
busy and increased the number of lawsuits against accountants,
it has also turned the auditor/client relationship bitter.
As auditors and clients strive to come to terms with new regulations,
there are sweeping shifts undergoing in auditing horizon.
©
CFO Publishing Corporation 2003. CFO Magazine (www.cfo.com).
Reprinted with permission.
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