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Accounting News Roundup: Economy Adds 117,000 Jobs; FASB Takes on Private Co Accounting; Who Pays the Lowest State Business Taxes | 08.05.11

Employers hire 117,000 in July; jobless rate slips to 9.1% [Washington Post]
Hiring picked up in July, the government said Friday, offering evidence that the nation is muddling through a period of very weak growth but not falling back into recession. Employers added 117,000 jobs last month, the Labor Department said Friday, compared with a revised 46,000 in June and better than the 85,000 net new jobs that forecasters had expected. The unemployment rate ticked down to 9.1 percent, from 9.2 percent in June.

FASB Meetings to Address Private Company Accounting Issues [Journal of Accountancy]
FASB said it is hosting two public round-table meetings in October to discuss issues relating to existing private company accounting and reporting standards. The meetings, scheduled for Oct. 11 and Oct. 17, will discuss issues including accounting and disclosure requirements relating to variable-interest entities, interest rate swaps and level 3 fair value measurements.

The auditing profession in Bangladesh: Turning the tide? [The Financial Express]
There were times when the auditing profession in Bangladesh used to draw a lot of criticism from the company directors, researchers, and popular press for their perceived failure to do their job as auditors properly; the quality of audited financial statements were questioned, and the role of the Institute of Chartered Accountants of Bangladesh (ICAB) in disciplining its members was challenged.

California taxes from businesses decline [The Orange County Register]
California businesses paid $85.4 billion in state and local taxes in the 2010 fiscal year, according to a new report from the Council on State Taxation and Ernst & Young LLP. California’s corporate income tax revenue declined 18% from July 1, 2007 through June 30, 2010, and its property tax revenue plunged 27%, reflecting the state’s real estate woes.

Does Connecticut Really Have Nation’s Lowest Business Taxes? [The Hartford Courant]
Connecticut businesses have the lightest tax burden in the nation, according to a new study that is being hailed by some as proof that companies are overly coddled by the state, and slammed by others as misleading and dangerous. The study done by Ernst & Young for the Council on State Taxation (COST) adds up the total amount of state and local taxes paid by business in each state — which was $6.9 billion in Connecticut in 2010. Each state’s total is then divided by that state’s total private-sector economic output, for a percentage.

E&Y beefs up its insurance team [The Royal Gazette]
Accountants Ernst & Young (EY) has announced three new appointments to its London and Bermuda insurance team. Paul Cooper, Simon Burtwell and Ben Reid have all been appointed to senior roles due to increased demand from its clients.

Audit of Alameda County assistance program reveals gross mismanagement [The Oakland Tribune]
An Alameda County audit of a now-defunct countywide assistance program shows hundreds of thousands of dollars in mismanaged grant money and questionable expenses — including money spent on alcohol, massages and dubious travel.
The audit of the Associated Community Action Program, commonly called ACAP, also confirms what former employees had asserted — a complete lack of oversight by the program’s governing board. That board was made up of one county supervisor and one elected official from every city in the county, excluding Berkeley and Oakland.

Should Internal Audit ‘Do SOX’? [Norman Marks via Sustainable Business Forum]
There is a sharp divide among internal audit professionals as to whether the internal audit function should play a significant role in the SOX program. In the first few years of SOX, management more often than not looked to internal audit as internal control experts to lead the development and implementation of the SOX program.

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