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Accounting News Roundup: Audit reports = AOL email; Enron Whistleblower Gets IRS Payout; Feds Suspend Deloitte’s Afghan Contract | 03.16.11

Economic hit from Japan quake seen up to $200 billion [Reuters]
Japan’s devastating earthquake and deepening nuclear crisis could result in losses of up to $200 billion for the world’s third largest economy but the global impact remains hard to gauge five days after a massive tsunami battered the northeast coast. As Japanese officials scrambled to avert a catastrophic meltdown at a nuclear plant 240 km (150 miles) north of the capital Tokyo, economists took stock of the damage to buildings, production and consumer activity.

Two Obsolete Models: Global Financial Reporting and Audit — And Pimping Spam Viagra With AOL’s Rogue E-Mail [Re:Balance]
[F]or the last twenty-five years, nothing but in-bred regulatory inertia and supine user acquiescence have propped up the standard auditor’s report on a financial reporting model that is no less obsolete than that of AOL.

US audit reform debate not as raucous as in UK? [Accountancy Age]
Francine McKenna looks at the U.K.’s attempts at reforming the audit biz versus the U.S.’s attempt to…well, never mind.

Morale at SEC Remains High Despite Obstacles [FINS]
Morale at the SEC is high despite a frozen budget and staunch Republican opposition to increasing funds, according to deputy director of enforcement Lorin Reisner. “Morale is high because we continue to bring important enforcement actions,” he said. “We have empowered our staff with greater responsibility, more tools and more streamlined decision-making.”

IRS pays Enron whistleblower $1.1 million [WaPo]
Before Enron was publicly exposed as a financial house of cards, a whistleblower tipped the Internal Revenue Service that the company was using abusive tax shelters to generate fictitious income, a law firm representing the informant said Tuesday. Now, more than a decade later, the IRS has paid that whistleblower a $1.1 million reward, the law firm said.


Top 50 Companies for Executive Women 2011 [AOL]
Accenture #2; KPMG #25.

In Lehman’s Demise, a Dwindling Chance of Charges [DealBook]
Can it be that the largest bankruptcy ever will simply pass into history with no one held accountable for the losses inflicted on investors and the market?

Afghan Contract for Deloitte Suspended [WSJ]
The U.S. government has suspended Deloitte Consulting LLP’s contract to advise Afghanistan’s central bank ahead of the release Wednesday of an investigation into the regulator’s failure to stem corruption at the country’s largest private lender. An investigation by the inspector general for the U.S. Agency for International Development, which issued the contract to Deloitte, is expected to be highly critical of the firm’s failure to flag corruption at Kabul Bank, saddled with losses estimated to be as high as $900 million.

Posted in ANR