Absurdities? Like me-chan-i-cal-ly applying paragraphs 55-57 of SFAS 123(R). You can get stock option expense for an employee who leaves a company then returns, exceeding that if he was continuously employed. Dealing with PCAOB "inspectors" reminded me of Supreme Court case Graffam v. Burgess, my 24 October 2007 post: http://skepticaltexascpa.blogspot.com/2007/10/call-out-cops.html.
Could the PCAOB help investors? Maybe? It could stop "inspecting" CPA firms and "inspect" audits. With a $15 trillion US stock market capitalization (MC), let the PCAOB inspect 500 audits a year, one per $30 billion. Thus XOM, WMT, MSFT, APPL and other "large caps" audits will be inspected annually. So? Of 500 audits inspected, 494 will be by the Big 87654, four by the "little three" and two by 1,790 other firms. Think of the time the PCAOB could spend with Vampire Squid, GS-NYSE, current $86 billion MC instead of micro caps. If the PCAOB inspects two audits for each of the 1,790 small firms, that's 3,580 audits. With total MC audited of $60 billion, that's a $17 million average auditee size, or 25% of Lloyd Antoinette Blankfein's 2007 year end $68 million bonus! What gives? The PCAOB is a scam. Kill it Supremes! Please. If every audit by the 1,790 small firms is defective, how much can that reduce investors' returns? Not much. Every hour the PCAOB spends with micro caps is one less hour it spends at: GS, C, FNM and other members of my "rogues gallery". Ladies and gentlemen of the blogosphere, why do you think the Big 87654-controlled PCAOB spends as much time as it does on the 1,790 small CPA firms in question? What say you?