Lawyers for former MF Global Holdings clients have added PricewaterhouseCoopers as a defendant in a lawsuit that previously named CME Group. PwC is accused of auditing failures on the firm's internal controls; CME Group was the exchange that had a supervisory role over MF Global.
Finance chiefs would have new ethical considerations under proposed changes to a global ethics code for accountants. The International Ethics Standards Board for Accountants is proposing steps that management accountants should take if they suspect fraud. That includes how and when to disclose this information to management, the board or external sources.
Tim Kirk, a partner and head of financial services at accountancy and business advisory BDO, said the UK Financial Services Authority's recovery and resolution plans likely will cost banks and other financial-services firms "tens of millions of pounds". Kirk's estimate is much higher than that from the FSA. "It is questionable whether it is worth companies investing these significant amounts of time and money in complex recovery and resolution plans when there are much higher priorities," Kirk said.
The Financial Accounting Standards Board and the International Accounting Standards Board adopted changes to guidelines on how assets should be valued based on market prices. The tweaks require firms to disclose more about how their most exotic assets are valued.
RSM International, BDO, Mazars Group and Grant Thornton released a joint statement ahead of the European Commission's hearing on auditing practices, saying they approve of more government regulation and intervention if such action will head off another financial crisis. They suggest areas of focus that include the creation of an integrated single market for audit, avoiding concentration in the market by enhancing the relevance of auditing and adopting international auditing standards. Read the AICPA's comment letter on the EU's preliminary proposals.