Only a day after audit regulators have proposed a new method for extracting from audit firms the names of engagement partners on each public company audit, the SEC blew open the discussion with a long list of its own questions about whether audit committees should provide that and many more new disclosures.
Lots of people talk about the compliance function as crucial to business strategy today, but gaps remain: According to one PwC survey of chief executives, 78 percent of CEOs say overregulation is the top threat to growing their business; at the same time, only 35 percent of CCOs in PwC’s State of Compliance survey say they participate in setting business strategy. More on how to bridge the divide is inside.
Everyone knows that independent chief compliance officers make for a better compliance program, right? Um, perhaps we need to think again: New data suggests that companies with compliance reporting into the general counsel tend to be more effective. The lesson may not be one of inherent superiority, says LRN’s Wayne Brody; it could be a warning that independent CCOs face a tough task of building strong, enterprise-wide relationships.
The Food and Drug Administration is overhauling how it accepts submissions for a host of filing requirements imposed on drug and medical device makers. For many, this will be the first time the submissions have ever been filed electronically. While the move away from paper documents may ultimately be advantageous for all involved, companies will face no shortage of confusion and compliance concerns as the pieces fall into place.
Compliance officers talk a lot about the need to embrace new technology. This week in a guest column from Raphael Richmond, global director of compliance at Ford, we hear how her team developed a compliance app for employees, business partners, the public, and even a certain Big Auto compliance chief who found herself pondering a potential ethics problem at the Compliance Week 2015 conference.
Cyber-security is now a very real risk, with the potential for staggering costs and reputational harm. Cyber-security has another unusual feature as well: It falls into the realm of conscious harms, where companies must play a cat-and-mouse game to stay ahead of attackers. How do you build, maintain, and audit controls for something like that? This week, columnist Jose Tabuena explores tools and methods to consider when an active brain is behind the harm.
The conversation about personal liability for compliance officers is buzzing again, thanks to a hornet’s nest SEC Commissioner Daniel Gallagher stirred up with a complaint about recent sanctions against two CCOs. “We’re hearing similar concerns among CCOs at investment adviser firms—and not just from CCOs, but also from senior management,” says Karen Barr of the Investment Advisor Association. More inside about the nature of the risk and how widespread it may be.
Even the simplest accounting issues, it seems, can be anything but simple. Rulemakers were reminded of that recently when they tried to simplify how companies account for the cost of securing debt. “Most people get confused by it,” says Diana Gilbert of RoseRyan. “People get wrapped around the axle on that.” Inside, a tale of how simplicity got pretty complicated, and how rulemakers finally decided what you report on your financial statements.