Audit Watchdog Proposes New Exec Pay Regulation

Law360, New York (February 28, 2012, 8:29 PM EST) -- The Public Company Accounting Oversight Board on Tuesday proposed amendments to auditing standards that it says will improve auditors' understanding of companies' relationships with their executive officers and oversight of executives' pay.

The proposal also includes amendments to enhance auditing of a company's “significant unusual transactions” and a new standard that aims to improve accounting for and disclosure of companies’ transactions with related parties.

The executive officer amendment was inspired by their unique position to commit financial statement fraud or asset misappropriation through their ability to manipulate accounting records, the board said. Moreover, a...
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