Anyone who has a sibling knows that you can get in trouble for the actions of others. For companies, the same principle applies to third-party affiliates. In fact, more than 90 percent of reported Foreign Corrupt Practices Act cases involve third parties, such as sales affiliates and resellers, acting on the company’s behalf, according to […]
Internal Controls
Posted inInternal Controls
Info Governance: Get Data Classification Right First
Data classification is one of the most crucial elements of an effective information governance process—yet one that many companies fail to implement well. In its simplest terms, data classification is the process of categorizing data based on its level of sensitivity. When done properly, the classification of data helps a company determine the most appropriate […]
Posted inInternal Controls
The art of managing policy exception requests
Exception requests are often a thorn in the side of policy managers, and yet they are unavoidable for most.
Posted inAccounting & Auditing
Audit Firms Passing PCAOB Scrutiny to Clients
With the Public Company Accounting Oversight Board putting the screws to external audit firms to get tougher on internal controls, it was only a matter of time before that pressure was passed on to the companies they audit. It appears that time is here, as internal auditors and audit committee members say they are feeling […]
Posted inInternal Controls
New Law Expands Whistleblower Protections at Federal Contractors
Whistleblower protections were expanded to more employees at federal contractors last month, meaning companies in the defense industry and others will have to be on high-alert for retaliation against employees who raise concerns. The National Defense Authorization Act for fiscal year 2013, signed into law by President Obama on Jan. 3, substantially enhances whistleblower protections […]
Posted inAccounting & Auditing
Auditors Are Seeking More Information From Internal Investigations
Under greater scrutiny from all corners of the capital markets, external auditors are increasingly demanding to see behind the curtain of internal investigations at public companies, where findings could affect financial statements. “The tension has always been there, but it has intensified lately,” says Mike Loritz, an auditor and shareholder with audit firm Mayer Hoffman […]
Posted inAccounting & Auditing
Auditors to Focus on Internal Controls After Poor Inspection Results
Public companies can expect some extra scrutiny of their internal control over financial reporting in the upcoming audit cycle after regulators gave auditors a new warning to fix lingering problems. In a new report summarizing internal control audit problems spotted in 2010 inspections of the eight largest firms, the Public Company Accounting Oversight Board says […]
Posted inInternal Controls
Internal Control Audit Failures Too High, PCAOB Says
Auditors are making too many mistakes in their audit of internal control over financial reporting, prompting a new warning from the Public Company Accounting Oversight Board to pay closer attention to auditing standards and the firms’ own audit methodologies. The PCAOB said in a summary of its inspection findings with respect to internal control over […]
Posted inInternal Controls
Fostering Ethics Transparency in the Expanding Supply Chain
Consumers, investors, and regulators are demanding that global companies disclose more about the steps they are taking to improving their social and environmental footprint. Such demands are driving innovations in how companies get better visibility into their complex web of supply chains and reduce compliance and ethics risks. At our inaugural West Coast conference last […]
Posted inAccounting & Auditing
Internal Audit Departments Preparing for Rapid Change in 2013
Chief audit executives are developing their 2013 audit strategy, and the plans are shaping up to look drastically different than they did in 2012, or at least they should, say audit advisers. With budgets and hiring increasing for many internal audit shops, CAEs are generally expecting to have more resources at their disposal in 2013, […]
