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Accounting New Roundup: Chinese Clean-tech Firm Admits to Accounting Fraud; COSO Moves to Modernize Framework; Sachdeva’s ‘Remorse’ Is Funny | 11.19.10

Bernanke Takes Aim at China [WSJ]
Federal Reserve Chairman Ben Bernanke fired back amid criticism at home and abroad of the Fed’s easy-money policies, arguing that China and others are causing global problems by preventing their currencies from strengthening as their economies boom.

Rino Int’l admits to accounting fraud – auditors [Reuters]
Chinese clean-technology firm Rino International Corp (RINO.O) admitted to accounting malpractice, according to a letter from its auditors filed with U.S. securities regulators, a week after research firm Muddy Waters first made the allegations.

According to the letter, Rino’s Chief Executive Zou Dejunas said the company did not enter two of the six Rino customer contracts discussed in the Muddy Waters report, while a third was “explainable.”

When asked about the company’s other contracts, CEO Zou said “there might be problems with 20-40 percent of them,” according to the letter from auditors Frazer Frost LLP that was filed with the U.S. Securities and Exchange Commission.

KeyCorp Says Mooney to Be First Woman Chief Exeutive at a Top 20 U.S. Bank [Bloomberg]
KeyCorp, Ohio’s second-largest bank, said Beth Mooney will take over as chairman and chief executive officer when Henry L. Meyer retires in May, making her the first woman to lead one of the 20 biggest U.S. banks.

Mooney, 55, vice chairman of the bank and head of community banking, was named president and chief operating officer effective immediately, the Cleveland-based lender said yesterday in a statement. She was named a member of the board and takes over as CEO on May 1.

COSO Launches Project To Modernize 1992 Internal Control Framework [FEI Blog]
From Edith Orenstein, “the Committee of Sponsoring Organizations of the Treadway Commission (COSO) announced it has launched a project to moderize its landmark Internal Control-Integrated Framework.

The framework, first published in 1992, has been supplemented by various publications since that time, including publications geared toward small public companies, and on monitoring of internal controls.”


Reid, Senate Dems go hardball on taxes [OTM/The Hill]
After the election of course, “Reid will force a vote on extending tax cuts for families earning below $250,000 and individuals below $200,000 that would allow tax rates on the wealthy to expire. But it’s not clear whether that vote will be on a permanent or temporary extension because of a split in the Democratic caucus, a notable change since the election.”

Genuine remorse from Sachdeva? Laughable. [Fraud Files]
Tracy Coenen is not impressed with the judge’s reasoning behind Sue’s 11 year sentence, “How remorseful can she be when almost her entire 25 page sentencing memo is full of excuses for why she shouldn’t be held (as) responsible?”

GAO: Compliance Costs of ObamaCare’s 1099 Reporting Requirement Are Low [TaxProf Blog]
So any talk of the financial burden on small businesses is just political rhetoric? Get out!

Posted in ANR