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Accountancy Newsletter |
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Issue # 4 November
13, 2002 |
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| We love to hear
your comments. It is true that we read, act upon and try to respond
to each and every piece of email we receive from our readers. You
people are our harshest critiques and also our greatest encouragers
who also provide us with the best of ideas. So please keep this
feedback rolling in so that we can provide you the most relevant
content and the best possible product. Thank you
The Accountancy team |
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| Weekly
Poll Results |
| Observing the crisis brewing
in our industry, we cant help but wonder whether Auditors are
independent or not in carrying out their duties or are bound by some
unseen rope. So this week, we put this question to you and
this is how you have answered. We have to say, the results of this
poll are quite alarming. |
| Ofcourse! |
9% |
| Ofcourse
Not! |
34% |
| Well ....
Yes! |
18% |
| Well ....
Not exactly! |
20% |
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Independence... what's that? |
17% |
| Auditors...
who are they? |
2% |
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Advertisement |
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In this week's issue:
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| In the News |
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| During the week,
IMF lauded Pakistan's fiscal consolidation and foreign
exchange reserves position, that is gave a general
approval of the current government's economic policies. But
it also gave a warning that high public debt deters
investment and Pakistan must do more to reduce poverty.
NBP during the week announced that its
earnings had surged
tremendously and had posted an increment
of near five-fold in the last nine months. Also during the
week,
National Electric Power Regulatory Authority (NEPRA) locked
horns with the Ministry of Water and Power for not
increasing the tariff of Water and Power Development Authority
(WAPDA) in accordance with the regulator's decision. In
the banking sector, mild but encouraging signals from banking
sector have been recorded as the
non-performing loans have reduced by Rs. 7.68 billion, and
it has been announced that
Dr Ishrat Hussain has been a given 3-year extension as
State Bank of Pakistan governor by the Government. |
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| Coming to the
professional news, PwC in the UK announced that
it will take up a status of a limited liability partnership
from January 01, 2003. In the current crisis faced by the
accounting industry, AICPA in the US has
issued a
new fraud standard that expands all auditors
responsibility. And for the first time, FASB of US and IASB
have
agreed to work together toward convergence of global
accounting standards.
IASB released a new exposure draft on compliance with
international financial reporting standards. And in the
ensuing battle between the accountants and federal government
in the US took a new turn when accounting firm BDO claimed
that the government appointed
chief overseer of audits in the country had misrepresented
facts. As a result of this scandal,
SEC's head resigned from his office. |
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| On the student front,
Institute of Cost and Management Accountants of Pakistan
issued another press release regarding its Winter 2002
examination starting from the 18th of November, 2002. |
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| Featured Articles |
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Unleashing the potential of internal
audit |
| Enron's collapse and
the serious corporate control implications that accompanied it
are having a profound impact on how organizations view their
corporate governance and control environments. Directors and
senior executives are rethinking governance processes with
heightened zeal, spurred by massive pressure from lawmakers,
regulators, the investment community and legions of unhappy
investors.
Read
the full article |
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BDO Seidman And The Accountants'
Revenge
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| That's
silly--accountants don't use pocket protectors, not for years.
They use PDAs, just like the investment bankers. But the case
of BDO Seidman versus Judge William Webster does raise an
important point, one that has been lost since Enron started
making headlines and Arthur Andersen started being vilified:
The books and records accountants audit are written first by
the clients.
Read the full article |
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Do you really want to be Managing
Director |
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For some finance specialists, rising to
finance director or chief financial officer is the pinnacle of
their ambitions. But what does it take to move a step further
and become chief executive? Sarah Perrin finds out.
Read the full article |
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| Articles for Students |
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The ACCA Exam Cycle |
| Ever wondered why ACCA
exams cost as much as they do? It’s because each of ACCA’s 112
examination papers undergoes a long and thorough quality check
before making it into the exam hall. This process demands
input from a large number of individuals, including the
Examiner, a panel comprising of an Assessor, an Education
Adviser, a Subject Co-ordinator and an Examination Sitter, as
well as each member of the marking team. Read
the full article |
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Ten Steps to a Top-notch Investigative
Interview |
| It takes a combination
of careful observation and inquiry to conduct an effective
audit. Although auditors are adequately trained to be alert at
a client site, most learn on the job how to ask questions to
elicit specific information. This is a matter of no small
importance because CPAs frequently have to inquire about
operations and procedures, to document internal controls and -
on occasion - to question the honesty and integrity of
management and employees. For practitioners who want to
improve their interviewing skills, this article will emphasize
what not to do or say to uncover wrongdoing. Read
the full article |
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