tag:blogger.com,1999:blog-8431368106238433082.post4043179244798717911..comments2024-03-27T05:19:21.691-04:00Comments on FEI Financial Reporting Blog: H.R. 4173, Wall Street Reform and Consumer Protection Act, Passes House; Summary of Accounting and Audit Related Provisionsfinancial executives bloghttp://www.blogger.com/profile/11084436965192606339noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-8431368106238433082.post-62522142126343985862020-10-31T05:06:39.377-04:002020-10-31T05:06:39.377-04:00I high appreciate this post. It’s hard to find the...I high appreciate this post. It’s hard to find the good from the bad sometimes, but I think you’ve nailed it! would you mind updating your blog with more information?<br /><a href="https://www.pinnacleweekly.com/7-essential-things-to-consider-when-looking-for-an-exchange/" rel="nofollow">Wallets world review</a><br />Victoria Heinickehttps://www.blogger.com/profile/11292948528408970980noreply@blogger.comtag:blogger.com,1999:blog-8431368106238433082.post-45282964734921182442020-01-12T22:32:41.053-05:002020-01-12T22:32:41.053-05:00Best work you have done, this online website is co...Best work you have done, this online website is cool with great facts and looks. I have stopped at this blog after viewing the excellent content. I will be back for more qualitative work.<br /><a href="https://rdvbs.com.au/" rel="nofollow">finance and leasing Glenroy</a>Daniel Bryanhttps://www.blogger.com/profile/03273791517955358425noreply@blogger.comtag:blogger.com,1999:blog-8431368106238433082.post-61220744823731173412020-01-06T03:51:01.137-05:002020-01-06T03:51:01.137-05:00Here, we will discuss finance. In my views, if any...Here, we will discuss finance. In my views, if anyone can't afford life's needs. It's government's duty to provide him financial assistance because it can be helpful for anyone. <a href="https://www.theacademicpapers.co.uk/buy-dissertation-online.php" rel="nofollow">Buy Dissertation Online</a>.Isabell Kiralhttps://www.blogger.com/profile/04044618767164946437noreply@blogger.comtag:blogger.com,1999:blog-8431368106238433082.post-48039160705065987552013-10-07T02:02:05.574-04:002013-10-07T02:02:05.574-04:00Looking for Debt Management Leads? Leads Bank best...Looking for Debt Management Leads? Leads Bank best source of UK for DMP leads and DMP Hotkeys. We generate <a href="http://www.leadsbank.co.uk/debt-management-leads.php" rel="nofollow">debt management leads</a> through email & telemarketing. Check our debt management hotkeys.<br />Anonymoushttps://www.blogger.com/profile/05505487067158458585noreply@blogger.comtag:blogger.com,1999:blog-8431368106238433082.post-39325518259252978582009-12-17T06:42:29.687-05:002009-12-17T06:42:29.687-05:00Thank you Georg for your comments!Thank you Georg for your comments!Edith Orensteinhttps://www.blogger.com/profile/13119281392433443408noreply@blogger.comtag:blogger.com,1999:blog-8431368106238433082.post-51779044142902946252009-12-16T06:10:22.368-05:002009-12-16T06:10:22.368-05:00Edith,
>Why didn't they replace "publ...Edith,<br /><br />>Why didn't they replace "public companies" in (b) (2) with "issuers, brokers and dealers" (as they do in (b) (1))instead of leaving a generic ref. to "companies"? <br /><br />I do not know. Sometimes congress poorly drafts acts and sometimes it does not do conforming amendments and conform the language. Using "issuers, brokers and dealers" instead of "companies" would have made more sense.<br /><br />Section 101(a) of the Sarbanes-Oxley Act is sort of a descriptive policy provision. The substantive provions that create the supervision are in the following articles. Section 102(a) basically makes audits of issuers (and in the future also of brokers or dealers) unlawful unless the audit firm is registered with the Auditing Oversight Board. By using the term "issuer" and defining the term "issuer" in the definitions section in section 2(a)the actual scope of the registration provision is established. So it primarily matters what is used in section 102(a).<br /><br />The Sarbanes-Oxley Act only uses the term "public companies" in the previously mentioned descriptive policy like section 101(a)SOA that establishes the PCAOB and tries to describe what it does in one sentence. The only other place where the term "public companies" is used is in 705(a) SOA that commissions a GAO study of the role of investment banks in manipulating the earnings of issuers. Ther term "public companies" is also not used in the other federal securities laws.<br /><br />In conclusion, in my opinion, I think it is not smart to use "companies" in section 101(a) SOA, but it does not really matter. They would be better of to user "issuers, brokers and dealers" instead.<br /><br />I chose the anonymous option because I thought that all the other options would require the prior registration of a user-ID. I now discovered that the Name/URL option does not require this and opens a box in which a name can be entered when it is selected.Georgnoreply@blogger.comtag:blogger.com,1999:blog-8431368106238433082.post-88598634943004490172009-12-15T20:49:33.650-05:002009-12-15T20:49:33.650-05:00Thanks for additional comments, Jim and 'Anony...Thanks for additional comments, Jim and 'Anonymous'.<br /><br />To Anonymous, the striking of the word "public companies" with "companies" (see (b) (2) from excerpt from Sec. 7601 below). Why didn't they replace "public companies" in (b) (2) with "issuers, brokers and dealers" (as they do in (b) (1))instead of leaving a generic ref. to "companies"? Thanks for sharing your detailed analysis, albeit anonymously, appreciate the time you took to contribute your thoughts.<br /><br />excerpt from HR 4173 Sec. 7601:<br />(b) ESTABLISHMENT AND ADMINISTRATION OF THE PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD.—<br />Section 101 of such Act is amended—<br />(1) by striking ‘‘issuers’’ each place it appears and inserting ‘‘issuers, brokers, and dealers’’;<br />(2) in subsection (a), by striking ‘‘public companies’’ and inserting ‘‘companies’’; and<br />(3) in subsection (a), by striking ‘‘for companies the securities of which are sold to, and held by and for, public investors’’.Edith Orensteinhttps://www.blogger.com/profile/13119281392433443408noreply@blogger.comtag:blogger.com,1999:blog-8431368106238433082.post-17793709013357426182009-12-15T13:40:23.701-05:002009-12-15T13:40:23.701-05:00Edith, your report of Saturday December 12 clearly...Edith, your report of Saturday December 12 clearly represented a lot of work to analyze what Congress is up to and translate it into something we mere mortals might be able to grasp. I had just read the Saturday WSJ article on healthcare featuring Jonathan Bush who noted that dealing with Congress is like dealing with young princes from another universe who are more intent on tending their hunting falcon than understanding this "markets" thing. Your report fits well with that description. <br />I must admit that at the end of the blog where you said "And, There's More!" I was expecting a Congressional offer in HR 4173 of Ginsu knives if I would only vote for my Congresswoman (Nancy Pelosi) in the next election.James Wallnoreply@blogger.comtag:blogger.com,1999:blog-8431368106238433082.post-73695671974731645662009-12-15T12:05:01.444-05:002009-12-15T12:05:01.444-05:00Edith,
In response to your questions, I include m...Edith,<br /><br />In response to your questions, I include my analysis of the proposed changes.<br /><br />Non-accelerated filers<br />=======================<br />Section 7606 (a) would PERMANENTLY exempt non-accelerated filers from compliance with section 404(b) of the Sarbanes-Oxley Act (i.e. from the requirement to have their registered public accountant audit the effectiveness of internal control over financial reporting)<br /><br />Section 7415 (c) would TEMPORARILY exempt non-accelerated filers from compliance with section 404(b) of the Sarbanes-Oxley Act until June 1, 2001 or until compliance cost reduction studies for accelerated and large accelerated filers have been sumitted to Congress by the SEC and the GAO, whichever date is later.<br /><br />SMALLER accelerated filers<br />===========================<br />Section 7606 (b) requires a similar cost reduction (including possible exemption) study for filers whose market cap is between USD 75 and 250 million by the SEC and the GAO.<br /><br />Non-accelerated and accelerated filers<br />======<br />Section 7416(b) would require a study to include a revenue filter in addition to the public float filer in the definition of a smaller reporting company. If I understand the definitions of an accelerated filer and large accelerated filer correctly they excludes issuers that are eligible to file smaller reporting company reports. The study would evaluate whether to account for smaller public companies with public floats less than $700,000,000 and revenues less than $250,000,000. A public float market cap is the lower boundary for large accelerated filers. This could lead to the exemption of accelerated filers that have revenues below USD 250 million from both section 404(a) and section 404(b) of the Sarbanes-Oxley Act since they would no longer meeet the definition of an accelerated filer (which excludes smaller reporting companies).<br /><br />Registration of auditors of brokers and dealers with the PCAOB<br />===================================<br />As far as I can see, the language would only capture non-public broker dealers but not non-public issuers because it leaves the definition of the term issuer in section 2(a)(7) of the Sarbanes-Oxley Act intact. This definition of issuer only covers issuers that have securities registered under section 12 of the Securities Exchange Act, that have a reporting obligation based on Section 15(d) of the Securities Exchange Act or that file or have filed a registration statement under the Securities Act (i.e. due to a public offering of securities in the US).<br /><br />Name change of PCAOB to Auditing Oversight Board<br />=================<br />This changes the name of the Public Company Accounting Oversight Board to Auditing Oversight Board. This makes sense, because the board oversees auditors and not accounting and because it no longer only oversees public companies (with securities registered with the SEC) but also brokers and dealers. The old name that included accounting was a misnomer in my humble opinion.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8431368106238433082.post-38529534620855375572009-12-13T16:46:23.989-05:002009-12-13T16:46:23.989-05:00Michael, thanks for your comment. I thought you al...Michael, thanks for your comment. I thought you also made a very practical comment during the webcast portion of the FASAC meeting last week, I am hoping to post a summary of that as well.Edith Orensteinhttps://www.blogger.com/profile/13119281392433443408noreply@blogger.comtag:blogger.com,1999:blog-8431368106238433082.post-51903546810800132662009-12-13T10:49:24.411-05:002009-12-13T10:49:24.411-05:00Great summary - thank you very much. I believ ther...Great summary - thank you very much. I believ there should be relief from 404B for smaller public companies.<br />Michael P Cangemi CPAMichael P Cangemi CPAhttp://www.canco.usnoreply@blogger.com