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May 2, 2013

Internal Audit

Audit News Update
New FASB Proposal Would Increase Private Companies' Options
On April 15, 2013, it was announced under a new proposal by the FASB that private companies will be able to choose and use only the GAAP exceptions or modifications that make sense for them in their financial reporting. The FASB and the Private Company Council (PCC) issued an invitation to comment on the private company decision-making framework, which will provide conditions under which the PCC can consider and vote on exceptions and modifications to GAAP for private companies. Comments are due by June 21, 2013.
To read more on this proposal, click here.

SEC Needs Better Controls to Protect Data - watchdog
On April 4, 2013, it was reported by the new inspector general, Carl Hoecker, two separate audits in the month of March found vulnerabilities in the SEC's information technology system. The first audit examined how well the SEC maintains controls to protect sensitive information that it shares with the Financial Stability Oversight Council (FSOC). The FSOC is comprised of a body of regulators that guard against systemic risks. The second audit reviewed the SEC's compliance with the Federal Information Security Management Act. The Federal Information Security Management Act is a law with a framework for government agencies to protect themselves against threats and ensure that data is secure.
To read more on these audits, click here.

IPO Pricing Signals Surge In Demand

On April 1, 2013, it was reported that in the first quarter, 36% of U.S. IPOs were priced above the range originally outlined in the registration documents that were filed with the SEC. According to Renaissance Capital, an IPO research and investment-management firm, that was the highest proportion in any year since 2004. So far this year, less than one quarter of IPOs this year have been priced below expectations, the lowest rate in 10 years.
To read more on this information, click here.

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David Landau & Associates, LLC