• European Union, China Resist PCAOB Audit Inspections [Compliance Week]
PCAOB inspectors have had a helluva time getting access to the necessary information they need in Europe and China and it has caused the international inspections to fall way behind. Because they wanted to be upfront about it, the Board issued a list of the firms that should have had inspections performed in the past four years.

The majority of the firms on the list are international affiliates of the Big 4 and many of the remainder are affiliates of second-tier firms like Grant Thornton and BDO. The PCAOB didn’t give any particular reason that it was being stonewalled in its press release last week, just that “information necessary to conduct inspections was, and continues to be, denied”.

• IRS clears Schwarzenegger of $80,000 tax lien [AP via Mercury News]
As he promised, Arnie has been cleared of the $80k tax lien that was issued to him last November.

At the time, it was claimed that it was a “paperwork snafu” which looks to have been more or less correct as “[Scharzenegger] was not notified until late last year because the IRS had sent mail to his home instead of his office. Due to security precautions, the governor does not receive mail at his home.” For the trouble Ah-nuld has to pay $20.50 of administrative fees which might get the IRS an extra box of shotgun shells.

• Private equity firms brace for tax battle [Reuters]
Private equity firms have a tendency to be easy targets for a federal government that is looking to increase tax revenues. Following that idea, last week’s budget rollout proposes taxing carried interest at the ordinary rate of 35% that would raise $24 billion over the next ten years. As you might expect this is not a popular idea:

while high-profile buyout firms may seem an easy target, the question is a controversial one. Critics argue that raising the taxes paid by the private equity industry will also hit small partnerships and venture capital, and may not even raise as much revenue as governments hope.

$2.4 billion a year for 10 years doesn’t seem to be all that much in federal government dollars and we’re not sure the government will spend it better than the private equity but it serves is an easy target for politicians pandering during their election year “look how I’m taking on the greedy” speeches.

• PwC auditor Srinivas gets bail in Satyam case [The Economic Times]
According the Economic Times, the Supreme Court in India “said since the case was based on documents, all of which has already been seized by the Central Bureau of Investigation (CBI), it would be of no use to keep the accused in jail, where he had been lodged since his arrest in January 24 last year.” They also report that the “chargesheet [runs] over 55,000 pages” which seems like a good enough reason to just forget this whole thing.

Seriously, they were just able to come to the conclusion that he didn’t need to be in jail because the documents were TLDR? What army of accountants is on this thing? Will this never end?

• Ex-Broadcom Officials off SEC Hook [WSJ]
Despite all the horn tooting the SEC has been doing, they still manage to mess things up pretty regularly. After criminal charges were dropped against Broadcom executives due to “evidence in the criminal case showed prosecutors tried to influence the testimony of three key witnesses, improperly contacted witnesses’ attorneys and leaked information about grand jury proceedings to the media,” the civil charges have been subsequently dropped.

The Broadcom case if you recall, involved a back-dating scandal but far more interesting were the allegations that Broadcom co-founder William Nicolas III was “conspiring to distribute illegal drugs, including methamphetamine and cocaine,” and providing prosties to clients in underground quarters built specifically for said purposes.

But now Nicolas is sober and it’s all been thrown out and the SEC once again looks like idiots. Sobriety and an incompetent SEC makes for a feel good story.

• PCAOB Launches a Redesigned Web Site [PCAOB Press Release]
It was official yesterday although the new look seems to have been up all week. Acting Chair Dan Goelzer managed to wake from his nap to throw in his boilerplate statement, although by the looks of the guy, were not sure he knows how to use email let alone give an opinion on the website: “The redesigned Web site enhances the PCAOB’s transparency efforts by making registration, inspection, standard setting and enforcement information more accessible and user-friendly to the investors, auditors and other interested parties who use our site.”

In other news, it appears that despite the decent salary no one wants to be the non-acting Chairman. Not that it’s an important position or anything.