Review Comments | 01.14.10

• Internal auditor faces charges in Satyam scandal – India’s Central Bureau of Investigation (CBI) also claims that have more evidence against PwC. [Accountancy Age]
• Does Sarbox Reduce Restatements? – One study suggests just that, “The study, from research firm Audit Analytics, suggests that companies that have not yet had their auditors review their internal-control reports are more likely to have a restatement than larger companies, even though they claimed to have effective controls.” [CFO]
• Stanford Offshore Investors Suspected of Cheating IRS – We realize this is hard to believe. [Bloomberg]
• Bank of America to Repay $45 Billion in TARP – Drinks are on Ken Lewis. [WSJ]
• SEC Obtains Asset Freeze Against Co-Founder of Canopy Financial in $75 Million Offering Fraud – Not to mention the stolen letterhead: “According to the SEC’s complaint, the fraud came to light when KPMG discovered that Canopy had been claiming that its financial statements for 2007 and 2008 were audited by KPMG. In fact, KPMG had never been retained by Canopy to audit its financial statements and had never opined on the financial condition of the company. KPMG issued a cease-and-desist letter to Canopy demanding that it stop the unauthorized use of KPMG’s name and the audit report purportedly issued by KPMG.” [SEC Press Release]

• Who knew it was National Bosses Day? ATL did. Happy day to all the chiefs out there!
• IRS rolls out 2010 tax rates [Denver Business Journal]
• “I’ll be like Martha ……. Stewart” – FBI cracks alleged Rajaratnam ring – Heads are going to roll on this one. Check out DB’s coverage as well. [FT Alphaville]
• Actor Nicolas Cage sues business manager Samuel Levin for $20M claiming ‘financial ruin’ – It’s the American way. [NYDN]
• Obama Administration Pushes Back at Bank Lobbying on Regulation – “The issue, according to administration officials, is the industry is generally on sound footing because of government help and lobbying against Obama’s regulatory plans goes against the nation’s long-term interest.” [Bloomberg]

• The SEC Whacks Ernst & Young Over Bally Total Fitness — Now for the Spoils of Victory – “it can be predicted – and the accounting profession should expect – that going forward, the SEC will aggressively aim its macho enforcement testosterone at the big firms’ individual personnel.” [Re: Balance/Jim Peterson]
• Choose Wisely! – Joe Kristan’s suggestions are better than the IRS’ [Tax Update Blog]
• Open Memo to Medifast Chief Executive and CFO Michael S. McDevitt – Sam is sticking up for his friend Barry Minkow. [White Collar Fraud/Sam Antar]
• Obama seems to have ignored Geithner’s advice on bank taxes – Yep. He’s fired. [CFOZone]
• Galleon’s Rajaratnam slams wiretaps, stays free – Cherry picked wire taps will not stand, says Raj’s attorney. [Reuters]