Fewer companies changed audit firms in 2011, reflecting relative stability in the market for financial reporting. While second-tier audit firms made some inroads, picking up a net gain of 28 audit clients, the Big 4 firms saw little turnover, losing a net of only eight clients. Deloitte experienced the most turnover, with a net loss of 22 clients. More audit change analysis and data inside.

As federal regulators slouch toward adopting the "Volcker Rule," designed to restrict proprietary trading by banks, critics are warning about its unintended consequences. "The problem is regulators are focusing too hard to remove any aspects of proprietary trading from the market," leading to rules that are overly broad, says Bob Colby, a partner at law firm Davis Polk.

The private equity firm Carlyle is testing the bounds of shareholder rights, with a proposal in its upcoming IPO to require arbitration (rather than class-action lawsuits) to settle shareholder disputes. The SEC has yet to rule on that idea, but battle lines are already emerging. "The benefit of arbitration is improving the efficiency of the process," says Douglas Smith, a partner at law firm Gibson Dunn.

The European Union is moving toward new data protection laws that will require many U.S. companies with a sizable European customer base to comply for the first time, which could carry a hefty price tag. "There is no doubt that, as written, this proposal will have major repercussions for business in terms of compliance costs," says Belinda Doshi, a partner at London-based law firm Nabarro.

Investment advisers seeking clarity about the appropriate use of social networking Websites such as Facebook, Twitter, and LinkedIn now have some much-needed guidance. The SEC's Office of Compliance Inspections and Examinations has issued a Risk Alert to help them craft and enforce a social media policy. Others worried about social media risks would do well to give it a read, too. Details inside.

Want to know one of the surest ways to strengthen your organization's anti-corruption capabilities? Start by discovering what you do not understand about the third parties that help you do business abroad. In the latest installment of our GRC Illustrated series, we offer some insights on how to get started on assessing third-party corruption risk.

Can internal audit and compliance professionals better collaborate for the benefit of their organization? Why not? Audit and compliance—working together—are uniquely positioned to help the board and management understand the importance of an integrated approach to governance activities. Inside, Columnist José Tabuena dispels some of the myths of integrated governance, risk, and compliance.