Exploring PCAOB Auditing Standard 2: Audits of Internal Control

By Jack W. Paul

MAY 2005 - The Sarbanes-Oxley Act of 2002 requires public accounting firms that audit public companies to register with the Public Company Accounting Oversight Board (PCAOB) and to adhere to professional standards established by the board for audits of public companies. The PCAOB’s pronouncement, Auditing Standard 2, An Audit of Internal Control Over Financial Reporting Performed in Conjunction with an Audit of Financial Statements, requires auditors to issue an opinion on the effectiveness of their public company clients’ internal control. Full Story

Publisher's Column

Tax Planning for Establishing Principal Residence Status

IRC section 121 allows a taxpayer to exclude $250,000 ($500,000 for joint filers) of gain on the sale or exchange of a home if it was owned and used as the taxpayer’s principal residence for two of the five years preceding the sale. To qualify for the $500,000 exclusion on joint returns, only one spouse must meet the ownership test, but both spouses must meet the use test. Full Story

Facing Reality About Social Security

The future of the Social Security program is probably one of the most important challenges that will confront our nation over the next century. Some claim that those who say Social Security requires an immediate fix are just crying wolf, and that any problems can be solved with minor adjustments over time. Full Story

Effective Governance in an Ethicless Organization

Can an organization whose tone at the top is either nonexistent or far removed from the norm have effective governance? If it is possible to have effective governance in what might be called an “ethicless” organization, what does this say about the factors that are critical to the effectiveness of an organization's governance process? Full Story

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