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Accounting News Roundup: PwC Alum Will Be FASB Technical Director; Accounting Firms Excited for Cross-Atlantic Probing; AMD CFO Gets Unexpected Promotion | 01.12.11

SEC Inspector General Probes Khuzami’s Role in Citi Settlement [Bloomberg]
The U.S. Securities and Exchange Commission’s internal watchdog is reviewing an allegation that Robert Khuzami, the agency’s top enforcement official, gave preferential treatment to Citigroup Inc. executives in the agency’s $75 million settlement with the firm in July. Inspector General H. David Kotz opened the probe after a request from U.S. Senator Charles Grassley, an Iowa Republican, who forwarded an unsigned letter making the allegation. Khuzami told his staff to soften claims against two executives after conferring with a lawyer representing the bank, according to the letter.

U.S. accounting board names technical director [Reuters]
The board that sets accounting rules for U.S. companies said it has named a former PricewaterhouseCoopers LLP partner as technical director to oversee staff work on new accounting standards. Susan Cosper will start at the Financial Accounting Standards Board on Feb 1. She succeeds Russell Golden, who was named to the board in September, FASB said in a statement on Monday.

Goldman Opens Up to Mollify Its Critics [WSJ]
In a 63-page report released Tuesday, Goldman says that for the first time in its 142-year-history, it will start disclosing how much revenue comes from the firm’s own trading and investing. The reporting change, which comes after an eight-month review and a bruising lawsuit against the firm by the Securities and Exchange Commission, will begin with Goldman’s fourth-quarter results later this month. The firm’s power and motives have been repeatedly questioned since the financial crisis erupted, in part because Goldman weathered the mess far better than most banks and securities firms.

Rosen Seymour Shapss Martin & Co. expands operations through merger [AW]
It was a busy merger Monday.

Accounting and Consulting Firms Morrison, Brown, Argiz & Farra, LLC And ERE, LLP Join Forces [MBAF]
Annnndd it continues.

Top six firms welcome US and UK audit co-operation [Accountancy Age]
International chiefs of PwC, Deloitte, Ernst & Young, KPMG, BDO and Grant Thornton, have produced a joint statement in which they say the agreement between the watchdogs will aid market confidence in the auditors’ work. Yesterday the US Public Company Accounting Oversight Board (PCAOB) and Professional Oversight Board (POB) in the UK agreed that they will co-operate in regulating audit firms.

The Audit Model Is Broken — “Re:Balance” Has Its Third Birthday — And The Message Hasn’t Changed [Re:Balance]
Happy Birthday to Re:Balance.

Amateur Fraud Fighters Who Do the SEC’s Job For Them Can’t Be SEC Whistleblowers, Sorry [JDA]
The Sam Antars of the world aren’t eligible for the glitz and glamour that so many SEC whistleblowers enjoy.

AT&T Preps iPhone Plan [WSJ]
On Tuesday, Verizon Wireless is expected to announce that it is getting the Apple Inc. phone around the end of the month, people familiar with the matter have said, ending AT&T’s three-and-a-half-year exclusive run with the iconic device. The announcement will kick off a battle as the two carriers fight to lure defectors and win over new customers. AT&T is expected to run new ads that will highlight what the carrier says are the iPhone’s greater speed and better functioning on its network, a person familiar with the matter said.

AMD CEO resigns, CFO named interim chief [Reuters]
Advanced Micro Devices Inc Inc’s chief executive resigned on Monday as the world’s No. 2 maker of PC microprocessor chips said it was seeking a new CEO to boost the company’s growth, sending shares down nearly 4 percent in after-hours trading. AMD said the resignation of Dirk Meyer was the result of a “mutual agreement” with the board of directors and that Chief Financial Officer Thomas Seifert will become interim CEO, effective immediately, as the company looks for a permanent replacement.

Posted in ANR