The U.K.-based Financial Reporting Council announced recently that it would review—and likely update—the 1999 Turnbull Guidance. The 14-page “Turnbull Report,” published in September 1999 by the Institute of Chartered Accountants in England and Wales, includes guidance for implementing sound internal controls for U.K. companies listed on the London Stock Exchange. Though the report is widely […]
Internal Controls
Posted inInternal Controls
Where Do We Go From Here? ROI A Priority, But Not Widely Tracked
As companies race toward the Nov. 15 deadline for the internal control provisions of Sarbanes-Oxley—ubiquitously known as “SOX 404”—the last thing on most compliance executives’ minds is next year’s compliance requirements. INGREDIENTS According to experts, there are three core elements to ongoing compliance—people, process, and technology. 1. People According to Stephen Wagner, chairman of the […]
Posted inInternal Controls
Internal Controls Get Poor Detection Marks; Numbers Misleading
In a recent study, The Association of Certified Fraud Examiners presented findings that bring to light a number of questions about the effectiveness—or seeming ineffectiveness—of internal controls as a detection measure for financial statement fraud and abuse. According to the ACFE’s 2004 Report to the Nation on Occupational Fraud and Abuse, which looked at the […]
Posted inInternal Controls
Q&A With Chief Accounting Officer At Iron Mountain
This profile is the latest in a series of weekly conversations with executives at U.S. public companies who are currently involved in establishing and developing compliance programs. An index of previous conversations is available here. We usually talk to chief compliance officers or governance officers. What can you tell us about your ‘chief accounting officer’ […]
Posted inInternal Controls
SOX 404 Remediation, Improvement Efforts Exposed; Deadline A Problem
Despite the fact that the internal control provisions of Sarbanes-Oxley become effective in less than four months, public companies are still struggling to meet the deadline and make the necessary improvements to comply. In addition, most companies are not even tracking the money being spent on Sarbanes-Oxley related improvements to systems and procedures, making it […]
Posted inInternal Controls
Boards Should Not Neglect Open Source Software Compliance
As directors and executives at U.S. public companies, we’ve all got plenty of items to worry about—risk assessment, internal controls, stock option expensing, and the litany of other governance and compliance issues. Unfortunately, I’ve just discovered another. Fortune Magazine recently ran a cover story that discussed SCO Group’s lawsuit against IBM, claiming ownership of portions […]
Posted inInternal Controls
41 Internal Control Disclosures In June
According to a review of regulatory filings during the month of June, 41 companies disclosed material weaknesses or significant deficiencies in internal controls, or provided updates on the status of their control-improvement processes. SECTION 404 That number is down from 51 similar disclosures in May. There were 39 disclosures in April, and 28 in March. […]
Posted inEthics & Culture
Q&A With VP Corporate Compliance At UPS
This profile is the latest in a series of weekly conversations with executives at U.S. public companies who are currently involved in establishing and developing compliance programs. An index of previous conversations is available here. UPS is a sprawling, worldwide company. How does it divide up and manage the compliance function? We created our compliance […]
Posted inInternal Controls
Take Control: Do You Know Your Role In Internal Control?
With the continued emphasis on Sarbanes-Oxley and related regulatory mandates, managers are never far removed from the topic of internal control. And a recurring discussion topic revolves around responsibility—just who should own internal control? It’s not an unreasonable query—penalties for failure to follow the dictates of Sarbanes-Oxley and related laws make compliance a personal and […]
Posted inAccounting & Auditing
Will The SOX Earthquake Shake Up Internal Audit?
With the Nov. 15 deadline for Section 404 rapidly approaching, most corporate internal audit departments are right in the thick of Sarbanes-Oxley compliance. INTERNAL AUDIT COMPARISON Below are examples of several internal audit functions at public companies, including their structure, membership and role in SOX 404 compliance: American Electric Power $14 billion utility Internal audit […]
