Nearly two-thirds of senior internal audit executives say managers at their companies still don’t take responsibility for internal controls governing financial reporting, while one-fifth worry that helping their companies develop compliance programs compromises the integrity of their audits, according to a new report. Those are the conclusions of a survey of 858 corporate auditors conducted […]
Dunn Christine
Posted inInternal Controls
Talking Internal Audit With Continental’s Top Auditor
In the latest of our weekly Q&As with governance and compliance executives, we talk to Steve Goepfert, vice president of internal audit at Continental Airlines and newly elected chairman of Institute of Internal Auditors. An index of previous conversations is available here. What are the biggest trends in internal auditing today that you want to […]
Posted inInternal Controls
Fraud: Assessing How It Can Happen To You
Fraud. It’s the business world’s dirty little word. “Generally speaking, corporations don’t talk about it, and nobody wants to really think that they are subject to it,” says David Richards, president of the Institute of Internal Auditors. Richards Such a view is dangerous, Richards warns. “That’s not the right attitude because it’s the big companies […]
Posted inTechnology
‘Foundational Controls’ For IT Systems
A new study says businesses struggling with controls over IT systems should focus on a select number of “foundational controls” that can make the greatest improvement in a company’s operating and security performance as well as meet regulatory requirements. Conducted by the Information Technology Process Institute, the study identified 21 controls that should be the […]
Posted inInternal Controls
Spreadsheet Controls, Without Going Crazy
Companies trying to comply with the Sarbanes-Oxley Act of 2002 are finding that one of the toughest—and yet most essential—areas for establishing controls over internal processes and procedures isn’t even required under the law: spreadsheets. BNSF Railway recently went through the process. The company, a subsidiary of the $13 billion Burlington Northern Santa Fe Corp., […]
Posted inInternal Controls
Few Companies Monitor Internal Audit Function
Less than 25 percent of corporations are giving their internal audit functions the rigorous external reviews recommended by the Institute for Internal Auditors as a standard of strong corporate governance in the post-Sarbanes-Oxley world, according to a new study. Conducted by PricewaterhouseCoopers, the survey, titled “2005 State of the Internal Audit Profession,” found that only […]
Posted inInternal Controls
Managing Internal Controls At Joint Ventures
Call it the intersection of convergence and compliance: Companies trying to obey Sarbanes-Oxley’s internal control provisions are finding that not only must they evaluate the controls their own operations—but also those of partners with whom they may form an alliance. In general, the risk that the internal controls of a collaborative effort won’t catch an […]
Posted inInternal Controls
When SOX 302, 404 Control Attestations Contradict
At first glance, it was a seemingly incongruous filing that Centerpoint Energy made in January. The company confessed to ineffective disclosure controls and procedures surrounding some natural gas transactions, which overstated its 2004 revenues and expenses by $511 million—and then, two paragraphs later, asserted that its internal control over financial reporting was fine. In fact, […]
Posted inBoards & Shareholders
As Savings Grow, E-Proxy Services Boom
Paperless proxies are saving corporations millions of dollars. At Automatic Data Processing alone, the $8 billion outsourcing giant says its customers save more than $700 million annually by using ADP to communicate with their shareholders electronically, eliminating the cost of printing and mailing materials. And as ADP racks up profits from the business, competitors are […]
Posted inInternal Controls
Effective Controls, Clean Opinions Rule The Roost
An overwhelming majority of large public companies now report strong internal controls over financial reporting—a further indicator that Sarbanes-Oxley may be producing its intended effect, and possibly portending a future of fewer financial restatements. A Compliance Week study of the 10-K filings of nearly 300 Dec. 31 year-end filers found that only 2 percent rated […]