The NY Times

"...the agreement is about survivability." The NY Times tries to explain why KPMG sold out some of its partners by admitting to "unlawful conduct" regarding tax shelters.Related story here.

Independence in Appearance

Independence in Appearance. NY TimesPublic documents show that the chief financial officer and head of compliance for the Bayou Group was also a principal in an accounting firm that audited the hedge funds' books. Daniel E. Marino was the No. 2 man at Bayou, a hedge fund company founded in 1996 by Samuel Israel III that appeared to have $411 million in assets at the end of last year. Mr. Marino

It's the Coverup

It's the Coverup. CFO.com reports that the PCAOB has taken its first action against a CPA firm since the PCAOB was created in 2003.At issue was a violation of the auditor independence rules of the Sarbanes-Oxley Act, and as part of the inspection, the regulator's Division of Registration and Inspections directed a request for information and documents to the firm. The board found that in

Was is Worth it?

Was is Worth it? The Economist wonders whether the benefits of Sarbanes-Oxley exceed its costs.Alan Greenspan, chairman of the Federal Reserve, spoke up in defence of the statute this week. It was faint praise. He said he was surprised that a law which had been passed so rapidly had worked as well as it has less of an endorsement than it first seemed, since laws dealing with issues as complex as

Delta Airlines

Par-value still has meaning. Delta Airlines is reducing the par value on its common stock.Shareholders also approved a Delta proposal doubling to 900 million the number of shares of common stock it is authorized to issue and reducing the par value of the common stock from $1.50 to 1 cent. The airline, which is incorporated in Delaware, believes the proposal gives it greater flexibility in using

Comeback of the 30-year Bond

Comeback of the 30-year Bond. This article says that the Federal government is considering issuing new 30-year bonds---something it hasn't done since 2001.

Anonymous Letters to Auditors

Anonymous Letters to Auditors. Newsday reports that an anonymous letter to state auditors led to the uncovering of a massive fraud in a Long Island school district.The Roslyn school scandal unfolded last year after an anonymous letter tipped off authorities that top officials had engaged in systemic misspending for a decade. So far, three former district officials -- Superintendent Frank Tassone,