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CALIFORNIA CORPORATE & SECURITIES LAW

To Whom Does “Related Parties” Refer In A.S. No. 18?

In June of last year, the Public Company Accounting Oversight Board adopted Auditing Standard No. 18 which “establishes requirements regarding the auditor’s evaluation of a company’s identification of, accounting for, and disclosure of relationships and transactions between the company and its related parties.”  Because A.S. #18 is effective for audits of financial statements for fiscal years beginning…

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Is Nevada Free-Loading On The SEC?

Nevada’s corporate law continues to attract attention from the academic community.  In a recent paper, three professors of accounting at West Chester University of Pennsylvania undertook a forensic examination of Nevada’s place in the market for corporate charters. Cataldo, A. J., Fuller, L., & Miller, T. (2014).  An Analysis of SEC and PCAOB Enforcement Actions against Engagement…

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California’s Oversight Of Accountants

Yesterday, Broc Romanek wrote in his blog about the Public Company Accounting Oversight Board’s announcement of settled disciplinary actions against three accountants.   In California, accountants are regulated by the California Board of Accountancy. California’s Board currently regulates over 81,000 licensees, which the Board claims is the largest group of licensed accounting professionals in the nation.  One would expect…

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At The PCAOB, They Give No Words But “Mum”

In March, the Public Company Accounting Oversight Board issued its first public research note.  Entitled “Activity Summary and Audit Implications for Reverse Mergers Involving Companies from the China Region (January 1, 2007 through March 31, 2010),” the research note was prepared by the PCAOB’s Office of Research and Analysis (aka ORA). A new fine question…

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U.S. Supreme Court Decides Fate of Legislative Platypus

This morning, the U.S. Supreme Court issued its opinion concerning the constitutionality of the Public Company Accounting Oversight Board (PCAOB). The Court held that the dual for-cause limitations on removal of PCAOB members contravene the U.S. Constitution’s principle of separation of powers.  (See my article in which I concluded “This violates Article II of the…

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