Daniel Terris first became interested in Lockheed Martin when a colleague entered his office carrying a board game called “The Ethics Challenge,” which involved characters from the popular Dilbert comic strip inserted into various ethical scenarios specific to the defense giant. Terris, who is the director of the International Center for Ethics, Justice and Public […]
Martinek Paul J.
Posted inInternal Controls
Adjustments, Restatements Are Predictors Of Weaknesses
Most accelerated filers who received failing grades from their auditors in the Section 404 filings under Sarbanes-Oxley had material year-end adjustments or had restated their financials, according to an analysis of nearly 3,000 filings by AuditAnalytics.com of Manchaug, Mass. Cheffers Of 360 material weakness opinions reviews, 192—or 53.3 percent—had material year-end or auditor-initiated adjustments. 152 […]
Posted inEthics & Culture
Anti-Bribery Law Poses Growing Threat For The Unwary
Companies need to be aware that both the Securities and Exchange Commission and the Department of Justice have stepped up enforcement of a federal law banning bribery of foreign officials, according to experts. The Foreign Corrupt Practices Act has been in effect since the 1970s but only recently has it been aggressively enforced—due in part […]
Posted inRegulatory Enforcement
Court: SOX May Give Life To ‘Late Filed’ Securities Suit
Asecurities fraud suit might be able to go forward under Sarbanes-Oxley even though it clearly would have been barred under the pre-SOX law, a federal appellate court has ruled. The decision could potentially open the courthouse doors to many securities lawsuits presumed dead. Several appellate courts have held in recent months that SOX—which expanded the […]
Posted inAccounting & Auditing
Corporate Lawyers On Andersen Ruling: A Sigh Of Relief
Corporate attorneys breathed a sigh of relief last week when the U.S. Supreme Court unanimously overturned the conviction of Arthur Andersen; the court ruled that the jury was wrongly told that the former accounting giant could be convicted even if it never intended to do anything unlawful. Andersen was convicted of witness-tampering for conduct that […]
Posted inAccounting & Auditing
Corporate Lawyers On Andersen Ruling: A Sigh Of Relief
Corporate attorneys breathed a sigh of relief last week when the U.S. Supreme Court unanimously overturned the conviction of Arthur Andersen; the court ruled that the jury was wrongly told that the former accounting giant could be convicted even if it never intended to do anything unlawful. Andersen was convicted of witness-tampering for conduct that […]
Posted inEthics & Culture
Focus Should Be On Ethics Program Outcomes, Not Process
This article is Part Two of a two-part series on ethics programs. Last week, we spoke with ethics leaders at Sprint and other companies, who discussed the importance of “support from the top” in developing successful ethics programs (see box at right). In implementing their ethics and compliance programs, too many companies are focusing all […]
Posted inEthics & Culture
Ethics Officers: Support From The Top Crucial To Success
This article is Part One of a two-part series on ethics programs. Next week, we take an outsider’s view of corporate ethics programs; when it comes to corporate ethics programs, many experts fear there is too much focus on “process,” and not enough focus on results. Helplines, surveys, focus groups and employee training are great, […]
Posted inInternal Controls
New Concern: Materiality Determination In 308(c)
Now that the first deadline related to Section 404 of The Sarbanes-Oxley Act has come and gone, companies are focusing on quarterly disclosures of changes in internal controls over financial reporting mandated by Item 308(c) of Regulation S-K. A provision somewhat forgotten amid the chaos of 404, Item 308(c) requires companies to “[d]isclose any change […]
Posted inFrom the Archive
With No 402 Guidance, Marriott Drops CEO’s Insurance
Last month, Marriott International told the Securities and Exchange Commission that it is permanently suspending the payment of premiums on the life insurance policies of its CEO for fear that such payments might violate Section 402 of the Sarbanes-Oxley Act. In making the announcement in a Form 8-K filing, Marriott took a swipe at the […]