ASCPA B & I Article Library
Category: Fraud Protection
4 Ways to Catch a Liar - 07/28/2009
From tense facial muscles to halting speech patterns, body language expert Carolyn Finch highlights four
physical signs to look for if you think someone is lying.
http://www.csoonline.com/article/498057/_Ways_to_Catch_a_Liar?source=CSONLE_nlt_update_2009-07-28
Look Out for Suspicious Activities - 07/28/2009
Difficult economic times can be the breeding ground for increased fraudulent activities. In July 2009, the
Financial Crimes Enforcement Network (www.fincen.gov) published its 12th edition.
http://bigfatfinanceblog.com/2009/07/27/look-out-for-suspicious-activities/
Controls and Economic Turbulence - 07/17/2009
Two recent and seemingly unrelated articles intrigued me. One is titled “Detroitosaurus Wrecks” and appeared
in the June 6 issue of The Economist. The other was “Fraud Triangle Analytics,” in the July/August issue of
Fraud Magazine. How do these two tie together?
http://bigfatfinanceblog.com/2009/07/17/controls-and-economic-turbulence
Fraud in Times of Recession - 07/28/2009
When a financial bubble bursts, fraud increases. True or false?
The indications from past recessions are that there is more likelihood for this statement to have an element of
truth than to be completely untrue. Fraud is a constant. A recession does not create fraud - it simply makes it
more probable that it will be discovered.
http://www.gtnews.com/article/7705.cfm
Category: Internal Control
Internal Audit: The Continuous Conundrum -09/18/2009
A generally accepted definition of "continuous auditing" remains elusive, and expert practitioners remain rare.
Here are some tips from the trenches for getting a program going.
http://www.cfo.com/article.cfm/14440838
Four Questions — and Smart Guidance — on Internal Controls Article & White Paper- 07/24/2009
Has your management team asked the following four questions about your organization’s internal controls?
1) Have we identified the meaningful risks to our objectives?
2) Which controls are “key controls” that will best support a conclusion regarding the effectiveness of internal
control in a particular process?
http://bigfatfinanceblog.com/2009/07/24/four-questions-and-smart-guidance-on-internal-controls/
Category: The Crystal Ball
Cash Flow is Down and Harder to Predict - 07/28/2009
It’s an unfortunate double whammy: cash flow at many companies has both declined and become more difficult
to forecast. Recent research from Hackett Group and the National Association of Corporate Treasurers found
that just over one in five companies is able to develop a forecast of cash flow two to three months out that’s
accurate to within
http://bigfatfinanceblog.com/2009/07/27/cash-flow-is-down-and-harder-to-predict/
Category: Banking
Bad Loans Are ‘Next Wave’ of Crisis - 07/31/2009
Rising delinquencies among consumer and corporate borrowers are the “next wave” of the financial crisis and
may affect banks that have avoided losses so far.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aUKAk1bKBVl8
How Big Is Too Big When It Comes to Banks? – 08/25/09
Ever since Uncle Sam pumped billions into Citigroup, Bank of America, and other banking behemoths in order
to keep them alive, the question has come up: Just how big is too big, when it comes to banks?
The answer isn’t as straightforward as it might seem. Intuitively, it would seem that if a bank is too big to fail,
and thus warrants the use of taxpayer money to keep it from death’s door – then, it’s simply too big. In addition,
highly concentrated banking systems would seem more volatile than banking markets that boast more disbursed
competition.
http://bigfatfinanceblog.com/2009/08/25/how-big-is-too-big-when-it-comes-to-banks/
New Banking Rules Emphasize Stability - 9/05/2009
White House Plan Aims to Constrain Firms' Size and Risks, Boost Reserves
The Obama administration is moving forward with one of its most fundamental financial reforms, a plan to
constrain the growth and risk-taking of giant banks and other firms.
http://www.washingtonpost.com/wp-dyn/content/article/2009/09/04/AR2009090403864.html
Credit Scores: Tighter Lending Makes Cracking the System Vital; Benefits of Paying on Time – 09-08-09
Credit scores have been getting a lot of attention lately, as lenders tighten credit standards and contend with
new legislation that has, among other things, reined in how credit-card issuers can raise rates. Meanwhile,
several firms, preying on our insecurities, are pushing credit scores and credit-score-tracking services for a
monthly fee. For all the attention they generate, though, credit scores are largely misunderstood.
http://online.wsj.com/article/SB10001424052970204348804574400700026852702.html#mod=WSJ_hpp_sectio
ns_personalfinance?mod=dist_smartbrief
Credit Tightens for Small Businesses – 10/12/2009
Many small and midsize American businesses are still struggling to secure bank loans, impeding their
expansion plans and constraining overall economic growth, even as the country tentatively rises from its
recessionary depths.
http://www.nytimes.com/2009/10/13/business/smallbusiness/13lending.html?_r=1&hpw
Accountants Misled Us Into Crisis - 9-10-2009
“The crisis highlighted how important better transparency around that system is,” Mr. Herz added in an interview
this week. “I would hope that would be a major lesson learned or relearned.” Unfortunately, some seem to have
learned exactly the opposite lesson. Accounting rule makers at FASB and its international equivalent, the
International Accounting Standards Board, have been lambasted for efforts to improve transparency by forcing
banks to disclose what their dodgy assets are actually worth, as opposed to what the banks think they should be
worth. Both boards have tried to resist, but have been forced by political pressure to back down on some
specifics. In the case of FASB, the retreat took a few weeks after Mr. Herz was ordered to act at an
extraordinary Congressional hearing. The international board was given a long weekend to retreat, with the
European Commission threatening to impose its own rules if the board did not cave in. Both boards tried to
reduce the damage by forcing more disclosures, but it is unclear how much good that will do. Neither was willing
to defy the politicians.
http://www.nytimes.com/2009/09/11/business/economy/11norris.html?_r=2&ref=business
F.D.I.C. May Borrow Funds From Banks – 9/21/2009
Senior regulators say they are seriously considering a plan to have the nation’s healthy banks lend billions of
dollars to rescue the insurance fund that protects bank depositors. That would enable the fund, which is rapidly
running out of money because of a wave of bank failures, to continue to rescue the sickest banks.
http://www.nytimes.com/2009/09/22/business/22bailout.html?_r=2&ref=business
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Credit Thaw Is Spurring Appetite for Bank IOUs
07/30/2009
Investors have developed a voracious demand for short-term debt issued by U.S. and European banks, and an
important global lending benchmark has fallen to an all-time low -- welcome signs that bank credit markets have
improved. But beneath the demand for short-term bank debt, known as commercial paper, and a drop in the
London interbank offered rate, or Libor, significant kinks remain lodged in the bank markets: Banks are using the
fresh cash to repay existing debt, or simply hoarding it. That cash buildup is potentially stymieing efforts by
regulators to circulate funds to borrowers and the most needy banks.
http://online.wsj.com/article/SB124890956451491803.html?mod=dist_smartbrief
Dealing with Liquidity Risk - 07/21/2009
The recent and sudden contraction in available liquidity has prompted many treasuries to reconsider their existing
liquidity strategies. While much of this focus has inevitably been on fulfilling immediate needs, the situation also
represents an opportunity to put in place structures that will deliver long-term benefits in terms of return, flexibility and
risk management.
http://www.gtnews.com/article/7700.cfm
Back to Basics - Reviving Cash and Working Capital Management - 06/16/2009
During the past year, the world has clearly seen the downside of a globalised financial system. No organization has
been left untouched by the ongoing turmoil in the capital markets and the knock-on effects on business.
http://www.gtnews.com/article/7656.cfm
Widening Commercial Real Estate Crisis Hits U.S. Banks - 07/28/2009
NEW YORK -- When commercial real estate markets went bust two decades ago, bankers said they learned a
hard lesson. The latest earnings reports from U.S. banks suggest many, in fact, did not. Losses from loans tied
to strip malls, office buildings, housing complexes, and the like are hurtling toward record levels not seen since
the infamous savings-and-loan crisis.
http://online.wsj.com/article/SB124873477869684979.html?mod=dist_smartbrief
‘Indexed’ CDs Aim to Balance Risk and Safety - 07/31/2009
Investors seeking both safety and a hedge against inflation are snapping up a product that hasn’t attracted
much attention in recent years: market-indexed CDs. Unlike traditional certificates of deposit, which earn a
preset interest rate for a specific term, an indexed CD is linked to one or more financial indexes, such as the
Standard & Poor’s 500. If the market index to which your CD is tied rises in value, you capture at least a portion
of that return. If the index falls, you still get your original deposit back. That deposit is also protected by the
Federal Deposit Insurance Corp., up to standard limits.
http://online.wsj.com/article/SB10001424052970203739404574285911562484156.html?mod=dist_smartbrief
Regulators Are Getting Tougher on Banks
Federal regulators have escalated the number of wounded banks they have essentially put on probation, with
some of the targeted banks complaining that the action is too harsh. The Federal Reserve and the Office of the
Comptroller of the Currency, two of the primary U.S. banking regulators, have issued more of the so-called
memorandums of understanding so far this year than they did for all of 2008, according to data obtained from
the agencies under Freedom of Information Act requests.
http://online.wsj.com/article/SB124900956863596085.html?mod=dist_smartbrief
Bailout program could be extended – 11/18/2009
The Obama administration is poised to extend the life of the highly unpopular $700 billion financial bailout and,
to display a commitment to fiscal responsibility, is planning to use much of the leftover funds to reduce the
national debt, government sources said.
http://www.washingtonpost.com/wp-dyn/content/article/2009/11/18/AR2009111803986.html
FDIC Approves Transitional Safe Harbor on Securitizations in Light of New FASB Standards – 11/18/2009
The FDIC Board of Directors, responding to accounting standard changes promulgated by FASB, adopted an
interim rule amending 12 C.F.R. § 360.6 to provide a transitional safe harbor effective immediately for all
participations and securitizations in compliance with that rule as originally adopted in 2000. Under the rule,
participations and securitizations completed or currently in process on or before March 31, 2010, in reliance on
the FDIC’s existing regulation are “grandfathered” and continue to be protected by the safe harbor provisions of
section 360.6 despite the changes adopted by FASB.
http://www.journalofaccountancy.com/Web/20092346.htm
Category: Information Technology Tips
Before you choose a VoIP system, be sure to ask yourself these five essential questions – 8/31/2009
Getting your company ready for a telephone switch migration is never easy. It is especially difficult when you are
trying to move toward a voice over Internet Protocol (VoIP) implementation.
http://www.baselinemag.com/c/a/IT-Management/Mastering-Your-VoIP-Migration294983/?kc=BLBLBEMNL09082009STR3
Security certificate warnings don't work, researchers say - 07/28/2009
Every Web surfer has seen them. Those "invalid certificate" warnings you sometimes get when you are trying to
visit a secure Web site. They say things like "There is a problem with this Web site's security certificate.” If you
are like most people, you may feel vaguely uneasy, and -- according to a new paper from researchers at
Carnegie Mellon University -- there is a good chance you will ignore the warning and click through anyway.
Often the warnings pop up because of a technical problem on the Web site, but they can also mean that the
Web surfer is being redirected somehow to a fake Web site.
http://www.infoworld.com/d/security-central/security-certificate-warnings-dont-work-researchers-say725?source=IFWNLE_nlt_sec_2009-07-27
12 Steps to PCI Compliance - 07/28/2009
The PCI is a multi-faceted security standard designed to protect credit card privacy that includes requirements for
security management, policies, procedures, network architecture, software design and other critical protective
measures. It is intended to help organizations proactively protect sensitive customer account data against hackers,
internal misuse and fraud.
http://www.gtnews.com/article/7710.cfm
FTC delays identity theft rules for third time
Well this is getting kind of predictable. The Federal Trade Commission this week has delayed [1] for the third
time in less than a year the deadline for companies to enact its identity theft rules known as Red Flags, which
were set to become practice Aug. 1. Originally set to become required practice Nov. 1, 2008, the Red Flags
program is touted as being one of the major ways the government plans to fight the growing identity theft blight.
http://www.networkworld.com/community/print/44011
Category: Information Security
Black Hat: Clampi Banking Trojan Spreading Rapidly - 07/30/2009
Researchers have identified a new and dangerous banking trojan that can utilize a Windows tool to spread itself
to all workstations across an organization. The Clampi trojan botnet, revealed by SecureWorks' researchers this
week at the Black Hat conference in Las Vegas, has infected as many as one million machines and is designed
to steal login details at some 4,600 sites, such as banks, mortgage companies and other places to pay bills
online.
http://www.scmagazineus.com/Black-Hat-Clampi-banking-trojan-spreadingrapidly/article/140925/?DCMP=EMC-SCUS_ITSecurityandFinance
Category: Economy
Is the Credit Tussle Easing? - 08/04/2009
Credit managers see a light at the end of the downturn tunnel. The National Association of Credit Management
reports that its monthly index is likely inching toward 50, which would indicate the economy is growing.
http://www.cfo.com/article.cfm/14162327
Inflation Will Accelerate Next Decade, Economists Say - 8/28/2009
The Federal Reserve will be unable to prevent the trillions of dollars in government stimulus pumped into the
U.S. economy from stoking inflation over the next decade, a survey of business economists showed.
http://www.bloomberg.com/apps/news?pid=20601103&sid=a6BvsAteUyRc
Lessons of the Financial Crisis -- One Year Later – 08/30/2009
The numbers hardly tell the story.
Today, the Dow Jones Industrial Average stands roughly 2000 points below where it was on this end-of-summer
weekend one year ago. No one knew then, of course, but the U.S. stock market and the world economy were
just days from historic calamity, unprecedented in the lives of anyone born in the last 80 years. And today? We
are nearly six months into one of the most impressive bull markets in memory; the Dow has risen 46% since
early March. The Nasdaq Composite Index is up 60%.Go figure. It's been a year of horrors and opportunities for
investors.
http://online.wsj.com/article/SB125158349559369687.html?mod=dist_smartbrief
For Commercial Real Estate, Hard Times Have Just Begun – 09/01/2009
As the commercial real estate market heated up earlier in the decade and lenders competed feverishly to issue
ever-riskier mortgages, hundreds of bankers, investors, lawyers, brokers, appraisers, accountants and analysts
flocked to an investors’ conference in Florida each January to celebrate their good fortune with lavish beach
parties featuring bikini-clad models and popular entertainers. But in what a Prudential Real Estate Investors
report described as “a move of near-perfect symbolism,” the conference sponsor, the Commercial Mortgage
Securities Association, recently announced that next year’s event would be relocated from South Beach to
Washington, where the industry has been lobbying strenuously for federal assistance.
http://www.nytimes.com/2009/09/02/business/economy/02office.html?ref=business
Fed may shun "gradualist" rate hike pace – 9/13/2009
The last time the Federal Reserve was raising interest rates, it did so at a snail's pace. But it may not take that
gradual approach to tightening policy the next time around.
http://www.reuters.com/article/ousivMolt/idUSTRE58C0YX20090913
Recovery Underway, Bernanke Suggests - 9/16/2009
Federal Reserve Chairman Ben S. Bernanke said Tuesday that the recession is "very likely over," offering his
most explicit endorsement so far of the view, increasingly widespread among economists, that a recovery is
underway.
http://www.washingtonpost.com/wp-dyn/content/article/2009/09/15/AR2009091501898.html
U.S. to push for new economic world order at G20 – 9/21/2009
The United States will urge world leaders this week to launch a new push in November to rebalance the world
economy, but there are doubts national governments will bow to external advice.
http://www.reuters.com/article/ousivMolt/idUSTRE58G34Z20090921
Negative Bond Returns Converge With Mortgage Miracle – 09/28/2009
Federal Reserve Chairman Ben S. Bernanke has some good news for investors: Treasury bondholders will
lose money for the first time in 10 years amid an unprecedented decline in the gap between the interest rate on
30-year mortgages and government notes, signaling an end to the worst financial crisis since the Great
Depression.
http://www.bloomberg.com/apps/news?pid=20601103&sid=amoFdVqpkh6M
CFOs Not on the Recovery Bandwagon Yet - 7/27/09
Finance executives are a bit more pessimistic than economists and other experts about the forecast for gross
domestic product, the unemployment rate, and other economic indicators, according to the CFO Prediction
Market.
http://www.cfo.com/article.cfm/14116611
Category: Accounting Rules
The New Crisis Report: What's in It for CFOs? - 07/31/2009
A global advisory group released 37 pages of recommendations on Monday discussing how regulators,
accounting standards setters, and — to some extent — CFOs, can help prevent the next financial crisis, and
work to fix existing "weaknesses" in accounting standards
http://www.cfo.com/article.cfm/14155093
The SEC's Most Wanted 08/03/2009
What does the regulator most want to see in future financial filings? Recent comment letters suggest that the
Securities and Exchange Commission has a keen interest in goodwill impairments, fair-value measurements,
and credit-risk disclosures.
http://www.cfo.com/article.cfm/14155106
Companies: New Lease Rule Means Labor Pains - 07/21/09
As standard-setters inch toward a new lease-accounting standard, corporations push back on the added work it
could create.
http://www.cfo.com/article.cfm/14072875
Rules Dig Deep into Financing Receivables - 07/20/09
FASB proposes a bevy of new disclosure provisions aimed at financing receivables. Will companies balk at the
rules, despite already having most of the information on hand?
http://www.cfo.com/article.cfm/14070524
Category: IFRS
AICPA Q-and-A explains basics of FASB/IASB revenue recognition project that will affect nearly all
contracts – 09/09/2009
In December 2008, in conjunction with their joint project on revenue recognition, the Financial Accounting
Standards Board and the International Accounting Standards Board both issued discussion papers titled
"Preliminary Views on Revenue Recognition in Contracts with Customers." Comments on the documents were
due in June, and the boards are currently discussing the feedback. Because of its scope and importance, the
AICPA has developed a Q-and-A on the preliminary views to highlight key points and examine the major
differences between what could be proposed and the current rules. In addition, the Accounting Standards
Executive Committee has issued a comment letter on the document, and the AICPA provided industry-specific
feedback through a separate comment letter as well.
http://www.aicpa.org/download/acctstd/Rev_Rec_final_FAQ.pdf
IFRS Risk Planning and Controls Execution – 9/16/2009
Conversion to IFRS will be far more than a technical accounting exercise. Implementing IFRS will impact many,
if not all, aspects of your business operations, including information technology. It may bring companywide
changes that will spawn new risks. These include system changes, modifications to processes impacting
employees’ day-to-day duties, and new accounting policies.
http://www.journalofaccountancy.com/Issues/2009/Sep/20091594.htm
Global Standards Alive and Kicking, SEC Accounting Chief Says – 09/17/2009
Rather than sidetracking international financial reporting standards, the economic crisis may have underscored
their importance, Kroeker says.
http://www.cfo.com/article.cfm/14440802
International Fair Value Accounting Draft Cross-Referenced to U.S. Counterpart - 07/31/2009
The International Accounting Standards Board (IASB) on Wednesday published new resources to help
stakeholders understand how its exposure draft on fair value measurement compares to the U.S. accounting
standard upon which it is based.
http://www.journalofaccountancy.com/Web/20091992.htm
Category: General
Planning for 2009 H1N1 Influenza: A Preparedness Guide for Small Business
As a small business leader, you are a valuable partner in our nation’s defense against natural and man-made
threats. Preparedness is the best method to defend against the impacts of all threats and all hazards, including
public health threats.
http://www.flu.gov/professional/business/smallbiz.html