September 21, 2020

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NASBA Pulled the Cruelest April Fools’ Prank Ever on Some CPA Exam Candidates

As far as the CPA exam is concerned, it’s one thing you really shouldn’t joke about. And, in NASBA’s defense, it’s not like they actually meant to punk a bunch of eager CPA exam candidates this past April Fools’ Day, it just so happened that way. Set the scene. It’s March 31 and you’re printing […]

This Is as Good as It Gets for Sarbanes-Oxley 404 Compliance

Six years and everyone pretty much has this down. Arthur Andersen (the man, not the firm) would be so proud.

Just don’t get lazy.

In the sixth year of compliance with Sarbanes-Oxley Section 404 requirements, companies with a public float greater than $75 million reduced their rate of adverse opinions from 5 percent in the fifth year to only 2.4 percent in the most recent year. Even if companies that have missed their filing deadlines turn in adverse opinions, it would bump the rate to only 2.8 percent, said Don Whalen, director of research for Audit Analytics.

Over the six reporting years that public companies have been filing the reports, adverse opinions have steadily fallen from a high of 16.9 percent for fiscal years ending after Nov. 15, 2004, to the current low of 2.4 percent, said Whalen. “It’s getting to the point where you wonder if it can even be reduced any more,” he said.