Articles | Compliance Week – Page 305
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Separation Conundrum: Should Compliance Be Independent of Legal?
Image: Title: RubinDespite the ongoing push for companies to separate the compliance and legal functions, giving chief compliance officers greater independence than they might otherwise enjoy while reporting to the general counsel, not everyone agrees it’s the only way to go. “I don’t think there is a right or wrong ...
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The Real Data Breach Risks Are Right Under Your Nose
While companies fret about shadowy hackers based in Russia and China hell bent on stealing customer information, employees—not cyber-criminals—pose the biggest threat to create data breaches and data loss, according to a recent study. Ungoverned and negligent file-sharing by employees is hitting epidemic proportions: More than half of respondents to ...
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With Americans Living Longer, Pension Changes May Be Needed
Image: Faced with compelling new evidence that Americans are living longer, companies may have to reflect potentially big cost increases associated with pension and retiree medical benefits in their financial statements. The Society of Actuaries has released data showing longevity rates increased at least two years on average. “This will ...
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ArticleAuto Industry Under Siege Over Defects, Mileage Ratings
Title: GrigorianA record number of product-safety recalls and massive civil and criminal penalties for compliance failures such as mis-stated mileage ratings have put all manufacturers and suppliers in the automotive industry on notice—and things are only just starting, as the National Highway Traffic Safety Administration bears down. “This level of ...
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Retirement Benefit Trend; SEC Rulemaking Concerns; More
Coming in the Nov. 11 edition of Compliance Week: CW’s Tammy Whitehouse looks at how many are considering new mortality rates in estimating retirement benefit costs; also next week, what companies have to say about long-awaited, most-anticipated, SEC rulemaking.
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SEC’s Disclosure Review Reignites Debate Over Forward-Looking Information
Companies, regulators, and investors have long debated the role of forward-looking information in disclosures, reports, and financial statements. In a new report, the CFA calls on the SEC to a use comprehensive disclosure review to decide what forward-looking information should be required in corporate disclosures and financial reports in particular. ...
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Raising the Bar on Year-Two Conflict Minerals Disclosures
Image: Title: WallerstedtThe first year of conflict minerals disclosures was basically a trial run, with low expectations. Companies are now working on the next round of filings, and the SEC’s expectations for detail will be greater, experts say. The task is to move beyond mere data collection and push compliance ...
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ISS Moving to Score Cards for Equity Plan Evaluations
Institutional Shareholder Services has proposed substantial changes to its voting policies on equity plans for the 2015 proxy season. Rather than assigning a pass or fail grade, ISS plans to implement a scorecard approach that weights various factors. The move addresses complaints that ISS takes a cookie-cutter approach to evaluating ...
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Regulators Are Once Again in Hot Pursuit of Worker Misclassification
Image: Title: HanrahanState and federal agencies are issuing a renewed warning to companies that regularly use independent contractors: classify them correctly, or face big penalties. They are also putting more funds into detection and enforcement, meaning companies are likely to see an increase in audits. “I would expect to see ...
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ArticleAccounting and Audit Suffering a Talent Shortage
With the improving economy and increased regulatory burden, accountants and auditors are in high demand once again, and the resulting labor crunch is pushing up audit costs. To make matters worse, long hours, the threat of litigation, and regulatory pressure are pushing some accountants out of the profession. “Turnover is ...
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Audit Staffing Concerns; Conflict Minerals Update; More
Coming in the Nov. 4 edition of Compliance Week: Internal audit staff shortages are causing a rise in audit fees and placing more demands on the IA function; also next week, CW’s Joe Mont provides a look at where companies stand in preparing for year two of conflict minerals compliance.
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CFPB Offers No-Action Letters With Strings Attached
Image: Title: LampeFinancial firms worried about an enforcement action from the Consumer Financial Protection Bureau may soon get a reprieve. The agency has proposed a no-action letter policy that would let financial firms test the regulatory waters before they roll out new financial products. The application process, however, requires much ...
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Reducing Systems and Risks in Purchase-to-Pay
Most companies maintain several systems within their procurement and accounts payable functions, especially if they have grown through acquisition. But several systems can create risks, including low supplier visibility. Fewer systems can help, but it’s not a cure-all. Many companies find they need to take steps to reduce the risks ...
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ArticleHow to Tell if Your Whistleblower Hotline Is Effective
As companies strive to keep investigations internal, rather than risk high-profile regulatory intervention, improving the hotlines they use to solicit employee tips and concerns is crucial. Using metrics and industry benchmarks can help, but measuring the effectiveness of internal whistleblower efforts may be the hardest part. Some tips and trends ...
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All Eyes on Internal Controls as Year-End Close Approaches
Image: Title: DurbinAs companies begin preparing for the year-end close, audit experts are warning them to take these final months of the year to check documentation. The Public Company Accounting Oversight Board is pressuring audit firms to scrutinize internal controls and other areas, and that scrutiny is likely to trickle ...
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ArticleSEC Enforcement Trends: Targeting Gatekeepers and Rewarding Tipsters
The Securities and Exchange Commission brought a record-breaking number of enforcement actions in fiscal year 2014, including several against compliance and audit executives. That should come as no surprise: Enforcement Director Andrew Ceresney (pictured above) warned last spring that the SEC wouldn’t hesitate to pursue executives, including compliance professionals, when ...
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As Tech Firms Enter the Payments Space, Regulators Are Watching
Last month Apple plunged into the world of payment processing with its Apple Pay service that allows its mobile devices to make payments at retailers. Rivals Google, Microsoft, and Facebook have already dabbled in the market that includes Pay Pal and several others. These disruptive technologies may prompt regulators to ...
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Year-End Preparation; SEC Enforcement in 2014; More
Title: Year-End Preparation; SEC EnfoComing in the Oct. 28 edition of Compliance Week: Hear from audit experts on what steps to take in planning for year-end close; also next week, a look back at the record number of enforcement actions brought by the SEC in 2014.
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Preparing for 2015 Employment Tax Compliance
As companies begin planning for tax compliance in the coming year, they are finding 2015 to be a mixed bag. The good news is that payroll and other tax law changes are minimal; the bad news is that some companies may see hikes in their tax rates. “Thankfully, ...