GAO

IRS Offers Employers a Worker Classification Do-Over

Reese Darragh October 11, 2011

A new volunteer program gives companies a chance to fix worker classification issues and get a break on back taxes, with no fines or interest. But that doesn't mean companies will get full amnesty for classification problems. In fact, the Labor Department is pursuing cases vigorously. "Misclassification is like sitting on a ticking time bomb. The faster employers resolve the issue, the better it will be for them," says Keith Reinfeld of law firm Fox Rothschild.

Universities Face New Whistleblower Liability Over Pay Rule

Jaclyn Jaeger September 13, 2011

Colleges and universities could be exposed to greater risk of whistleblower lawsuits under the False Claims Act, thanks to new rules adopted by the Department of Education this summer meant to restrict employee incentives for boosting enrollment and financial aid recipients. The changes end many safe-harbor provisions that existed for years and largely shielded schools from government action. Details inside.

PCAOB Starts Audit Reform Debate

Tammy Whitehouse August 23, 2011

The Public Company Accounting Oversight Board launched its shake-up of the auditing world last week, floating the idea of term limits for audit firms and their public company clients. Audit firms blast rotation as a draconian solution ill-suited to industry problems. "When, all of a sudden, do you become not independent?" asks Tim Follett of the firm Mayer Hoffman McCann. "There's no hard line in the sand on that."

GAO Report Lends No Support to 'Secondary Actor' Liability

Jaclyn Jaeger August 02, 2011

The Government Accountability Office recently issued a report on the legal liability of professional service firms that help companies commit fraud. The neutral stance of the report may influence regulators to maintain the status quo, which would be a victory for those who oppose "secondary actor" liability. More details inside.

It's Back! PCAOB Chairman Floats Auditor Rotation Idea

Tammy Whitehouse June 21, 2011

James Doty, chairman of the Public Company Accounting Oversight Board, is threatening to put the idea of term limits for audit firms back on the table, due to what he considers a trend toward low-quality audits. Audit firms and public companies are sure to push back hard, although Doty may just be trying to cajole auditors into making changes preemptively. More inside.

GAO: Whistleblower Program Still Needs More Work

Melissa Aguilar September 20, 2010

The agency tasked with ensuring whistleblowers who report workplace misconduct are protected from retaliation still has plenty of room for improvement in meeting that mission, according to a government watchdog.The Occupational Safety and Health Administration needs to take several steps to shore up its Whistleblower Protection Program, including ensuring it...

Reports Eye Life Settlement Regulation, Oversight

Melissa Aguilar August 24, 2010

Questions and concerns about the regulation and oversight of the growing market for life settlements have spurred two separate reports on that market in recent weeks.Typically, under a life settlement, the owner of a life insurance policy sells it to a third-party investor in exchange for a lump-sum payment that exceeds...

Grindler Memo Adds 10th Principle on Monitors

Melissa Aguilar June 03, 2010

Federal prosecutors ought to be clearer about what help they can provide to companies having issues with corporate monitors assigned to them as part of settlements with the Department of Justice.That's the gist of new internal DoJ guidance, detailed in a May 25 Memo written by Acting Deputy Attorney General...

SEC CFTC Form Joint Advisory Committee

Melissa Aguilar May 12, 2010

As part of a series of steps to harmonize their regulatory approaches, the Securities and Exchange Commission and Commodity Futures Trading Commission have formed a joint advisory committee comprised of market practitioners, former regulators, and academics to address emerging regulatory issues.The establishment of the Joint CFTC-SEC Advisory Committee on Emerging...

GAO Recommends Measures to Assess DPA, NPA

Melissa Aguilar January 19, 2010

As Congressional scrutiny of the government's use of deferred- and non-prosecution agreements continues, a new report offers suggestions about how to assess the effectiveness of those agreements.Deferred-prosecution and non-prosecution agreements, in which prosecutors require corporate reforms—among other things—in exchange for deferring or declining prosecution, have been in the spotlight since the...

More on Corporate Monitors

Melissa Aguilar December 01, 2009

In its latest report on the use of corporate monitors, a government watchdog agency says that companies with concerns about those monitors should get better information from the Department of Justice on how the agency may be able to help resolve those issues.That was the conclusion of a November Government...

SEC Enforcement Director Promises Changes

Melissa Aguilar May 08, 2009

In testimony yesterday before the Senate Banking Committee’s Subcommittee on Securities, Insurance, and Investment, Robert Khuzami, the new Securities and Exchange Commission enforcement director, promised numerous reforms that the Enforcement Division will be implementing to improve its performance.The hearing came just one day after the Government Accountability Office released a...

GAO Report Raises Four Key Questions for Khuzami

Bruce Carton May 07, 2009

Today at 2:30 pm ET, the U.S. Senate Banking Committee's Subcommittee on Securities, Insurance, and Investment will hold an important hearing on "Strengthening the SEC's Vital Enforcement Responsibilities." The hearing comes just one day after the release of an extraordinary Report to Congressional Requesters by the Government Accountability Office...

GAO Calls for Reforms, Cites Regulatory System Weaknesses

Melissa Aguilar January 13, 2009

A federal government watchdog report citing the urgent need for U.S. financial regulation reform details a framework it says should help lawmakers evaluate proposals to overhaul the current system.As a result of significant market developments in recent decades that have “outpaced a fragmented and outdated regulatory structure,” the Government Accountability...

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