Knowledge Center
 White Papers
 Data Sheets
 Advisors Research

Thursday, January 27, 2005

DiPiazza: Firms Unlikely to Meet Deadline

About 10 percent of U.S. companies are likely to report that they either couldn't meet a key corporate-reform deadline in time for their 2004 annual report or discovered weaknesses in internal accounting controls, PricewaterhouseCoopers Chief Executive Samuel DiPiazza said Wednesday.

DiPiazza heads one of the world's largest accounting firms and anticipates such disclosures as most U.S. companies prepare to file annual reports with the U.S. Securities and Exchange Commission in the next six weeks.

The reports are supposed to include results of a review of internal controls required by the Sarbanes-Oxley legislation, passed in 2002 in response to corporate scandals.

"We expect 10 percent, give or take, of public companies in the U.S. to have to report to their shareholders that they either couldn't get this done in 18 months, or they had a material weakness of a scale that could cause a misstatement," DiPiazza said at the World Economic Forum.

The Sarbanes-Oxley law includes a requirement that most publicly traded companies undertake an extensive review of internal accounting controls to test whether they have adequate procedures in place to record sales and accurately calculate asset values, among other items.

But despite pain for some companies, DiPiazza said the internal control requirement has been a largely positive development. Some companies have gained insights into their controls they didn't previously have, he said.

DiPiazza also said it's likely that regulators will look for ways to improve the law's provision by making it "less focused on paperwork and more focused on substance."

Earlier this week, SEC Chairman William Donaldson said the agency was considering postponing the deadline for foreign companies to file their internal control reports.

PwC itself has felt the impact of Sarbanes-Oxley, particularly through the creation of the Public Company Accounting Oversight Board, which oversees the U.S. accounting industry. The board recently proposed a rule to limit an accounting firm's ability to offer certain tax services.

Under the proposal, firms that audit a company's financial statements may not offer certain tax-shelter strategies to the same company and may not offer tax services to senior executives of the company. The rule is designed to preserve the independence of auditors.

posted by Brian Moran @ 8:40 AM   12 comments

At 7:04 AM, Blogger Rolo said...

I really liked the info on your site about tax shelter - nice work. I've just started my own tax shelter secrets blog and would really appreciate you stopping by

At 9:57 AM, Blogger Rich Molumby said...

I have an E-Cash Machine site/blog. It pretty much covers Making money on the web.

Come and check it out if you get time :-)

At 11:39 AM, Blogger Tom Naka said...

I have a international health insurance policy
site. It pretty much covers international health insurance policy
related stuff. Check it out if you get time :-)

At 6:52 PM, Blogger Bill888 said...

Interesting topics and nice blog. Will check back regularly. I have a forex trading system online site that deals with forex trading system onlineand blog that also deals with forex trading system online related topics. Drop by if you have a chance.

At 5:27 PM, Blogger allfreei said...

Very informative travel switzerland. Stop and have a look at travel switzerlandtoo.

At 2:18 AM, Blogger brian said...

Very informative ireland travel. Stop and have a look at ireland traveltoo.

At 5:38 AM, Blogger WorldTrader said...

Great Blog. I found a new chicago data entry jobs. Everybody can do it, Give our program a try up to a full 60 days and if you do not make any money or you are not happy for any reason, you may request for a full refund. chicago data entry jobs

At 7:05 PM, Blogger Henryrmsy said...

Thanks for the look see at your blog. For me internet marketing is the name of the game. So doing allowed me to collect what I have on display at Have a good day.

At 5:06 PM, Blogger Henryrmsy said...

Thanks for the look see at your blog. For me right livelihood is the name of the game. So doing allowed me to collect what I have on display at Have a good day.

At 9:41 PM, Blogger paymaster said...

Hey Blogger,

Your blog "DiPiazza: Firms Unlikely to Meet Deadline ", leads me to believe you will find my information on our Best Career Wages site to be very beneficial.

Some of the not so common searches that found our extensive wages site included ...

Accountants Wages
Auditors Wages
Artists & Performers Agents Wages
Athletes Business Managers Wages
Real Estate Appraisers Wages
Real Estate Assessors Wages
Budget Analysts Wages.

We have many hundreds of "essential to read" articles on wages and career topics in addition to many other popular subjects in our Average Career Wages site.

Best Wishes

At 6:31 PM, Blogger marker_king40 said...

John Fitch is truly a very interestting phenomena. I will bookmark your site
because I find it interestesting. I may also be able to shed some more info about
John Fitch.

I hope you can find some time to visit :) bestt regards.

At 8:38 PM, Blogger kleinoooo said...

Hey, you have a great blog here! I'm definitely going to bookmark you!

I have a financial seminar marketing site. It pretty much covers registered rep and insurance seminars.

Come and check it out if you get time :-)


Post a Comment

<< Home


Powered by Blogger