PCAOB: Public Company Accounting Oversight Board

Posted on | July 12, 2010 | Comments Off

PCAOB stands for Public Company Accounting Oversight Board. It was founded as per the Sarbanes – Oxley Act – 2002.

PCAOB works with the mission to oversee the auditors working in public companies, making sure that that audit reports prepared by them are informative, fair and informative. PCAOB makes sure that the audit reports are standardized and of public interest.

The members of PCAOB are appointed by the SEC (Securities and Exchange Commission).

The headquarters of PCAOB is located in Washington D.C. However there are regional offices across the United States.

Please visit the official website for more information on PCAOB and its functions, members etc: http://www.pcaobus.org/

MD&A: Management Discussion and Analysis

Posted on | July 8, 2010 | Comments Off

MD& A – Management Discussion and Analysis one part of a company’s annual report. In this section the management discusses various aspects of the company. This space has no restriction on time span. Both past and present day aspects of the company are discussed and analyzed intensively.

In other words the management of a company discusses all aspects of the company such as the previous year of operations of the company, its success rate etc. They even discuss about the future by drawing an outline of its future plans.

To an investor, this section is of great interest as it helps in analyzing the working of the company in close detail. However it should be noted that MD&A part of the annual report is not audited.

IIA: Institute of Internal Auditors is the national association

Posted on | July 4, 2010 | Comments Off

IIA stands for Institute of Internal Auditors is the national association. It is a national association consisting of accountants. These accountants are those who are engaged in internal auditing and are employed by business firms

The mission of The Institute of Internal Auditors is to provide dynamic leadership for the global profession of internal auditing. Activities in support of this mission will include, but will not be limited to:

• Advocating and promoting the value that internal audit professionals add to their organizations;
• Providing comprehensive professional educational and development opportunities; standards and other professional practice guidance; and certification programs;
• Researching, disseminating, and promoting to practitioners and stakeholders knowledge concerning internal auditing and its appropriate role in control, risk management, and governance;
• Educating practitioners and other relevant audiences on best practices in internal auditing; and
• Bringing together internal auditors from all countries to share information and experiences.

IIA conducts and evaluates a comprehensive professional examination which on passing certifies the accountant as a CIA (Certified Internal Auditor)

IIA was founded in 1941 and the global headquarters is in Altamonte Springs, USA

Further details on IIA can be obtained by clicking on the following link: http://www.theiia.org/theiia/about-the-institute/

MD& A – Management Discussion and Analysis

Posted on | June 30, 2010 | Comments Off

IFRS: International Financial Reporting Standards

Posted on | June 29, 2010 | No Comments

International Financial Reporting Standards (IFRS) are a set of standards that describe the manner in which data should be reported in a financial statement. Each transaction and each type of event should be reported in a financial statement as per the guidelines of IFRS

IFRS was coined with a great mission in place by the IASB. It is of great significance accounts and auditors and the general public as it makes international comparisons very simple.

IFRS was formerly known as IRS-International Accounting Standards. To be more precise IFRS was IAS between 1973 and 2001.

For more details on IFRS please click on the following URL: http://www.iasb.org/IFRSs/IFRs.htm