The final exam schedule for Accy 303 is as follows:
Regular Exam: Monday, Dec. 11, evening, 161 Noyes Lab
Conflict Exam: Tuesday, Dec. 12, evening 130 Wohlers Hall
A WSJ article on the Lernout and Hauspie bankruptcy or how the auditor blew it big. Watch the sorry saga unfold: The market sniffs a rat, the SEC comes calling, heads roll and poof!!!! What was $72, is now $3.50 and dropping!
The SEC appears to have reached a compromise on the proposed
modifications to the auditor independence rules. Here's some
background on what's been happeing over the last six weeks. No doubt
the SEC website will be updated before long as well. We should talk
about these developments ...
First, a link to the SEC's "what's hot" page.
Arthur Levitt's testimony to
Congress and a
speech to the
AICPA.
A Congressional bid to delay SEC
action and some political
analysis
New York Times articles on agreement between SEC and accy firms on new rules and a
followup. The Wall Street Journal initial take on it and a followup.
The Independence Standards Board Website and a copy of ED002 Exposure Draft on a Conceptual Framework for Auditor Independence, issued November 2000.
SEC Concept Release on IASC standards.
A New York Times story on the tire controversy. Our angle is representational faithfulness.
More on the SEC auditor independence hearings:
Transcripts of testimony given on Day 1 and Day 2 of the Third
Public Hearing on September 2 and 21, 2000.
Transcript of
testimony given at the Second Hearing on September 13, 2000.
Prepared testimony
for all sessions hearing.
The Public Oversight Board Website. For the report of the Panel on Audit Effectiveness dated August 31, 2000, click here.
October 1997 AICPA White Paper on Auditor Independence.
A December 1999 New York Times article on stock option accounting and one from today's NYT (Aug 29, 2000) on the magnitudes of these expenses. Two articles from the Economist magazine on incentive effects of using stock options to compensate managers and the role of good corporate governance in preventing abuse.
The SEC recently proposed modifications to existing auditor independence rules. These proposals have provoked considrable controversy (for accounting that is). The SEC has just finished one round of hearings on auditor independence rules and has called for additional testimony from interested parties. At your convenience you will want to read the entire testimony. Some of it is repetitive since many voices say the same thing, but all of it is educational in the extreme. There has probably not been a comparable public discussion about the audit industry at least since 1985 (the earliest I can speak of with personal experience).
Following this process should teach you more about how the SEC works than any amount of lecturing I could possibly do. You will enjoy the fireworks and learn a great deal, so at least for accy majors, I will *strongly* recommend you read the whole thing (but do NOT try and print it out unless you have a fast printer and lots of money to buy toner cartridges). The entire testimony is organized chronologically at:
After reading the first round of testimony given to the SEC you will want to see how the issue has been percieved in the media. I usually follow the coverage from time to time on the New York Times website and the Wall Street Journal as well as the Economist magazine. I will try and post some of the key articles if I have time but that may be a while. Later you will want to go and look at the second round of testimony as well.
8/22/00: Powerpoint for day 1
Please bring a passport-size picture of yourself to class on Tuesday 8/29 -- photocopies of your student id (with privileged information edited) are acceptable.
Browse the following at your leisure or as topics come up in class.