The International Auditing and Assurance Standards Board is seeking comment on proposals that would clarify auditors' roles and responsibilities in the International Standards on Auditing. The proposal would offer guidance on when the auditor plans the audit and assesses material-misstatement risks and when he or she evaluates misstatements and forms an opinion. The proposals incorporate feedback IAASB received to its discussion paper, "The Evolving Nature of Financial Reporting: Disclosure and Its Audit Implications." Comments are requested by Sept. 11, 2014.
The Internal Revenue Service is auditing wealthy taxpayers at a higher rate than the general population via its Global High Wealth Industry unit. Among the red flags that could prompt an audit: property-transfer records without corresponding gift-tax returns and high mortgage-interest deductions.
Blockbuster has begun searching for a CEO to operate the company after it emerges from Chapter 11 bankruptcy, The Wall Street Journal reports. The chain reportedly has decided to hire executive search firm Korn/Ferry International. A spokeswoman for the retailer said it is "moving forward with what is consistent with our public disclosures and the requirements of the recapitalization plan. [CEO] Jim [Keyes] remains fully engaged and committed to the business and the plan. This includes active participation in any evaluation of potential CEO candidates."
CIT Group's bankruptcy filing opened the federal government to criticism that it offered rescue plans to firms that were past the point of saving. CIT might not survive the proceedings, which would make it the biggest failure in the $700 billion the federal government spent on corporate rescue plans. "The $2.3 billion was wasted. They didn't save CIT, and they didn't save the taxpayers' money," said Sean Egan of credit-rating firm Egan-Jones.