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 […]
Internal Controls
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
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 […]
Posted inInternal Controls
FRB Governor Outlines 404 Best Practices For Banks
At an accounting conference for financial institutions last week, Federal Reserve Board Governor Susan Schmidt Bies outlined emerging best practices for corporate governance.
Posted inInternal Controls
14% Of Companies Only “Somewhat” Confident On 404
Buried in a compliance survey published by a security software company was an interesting anecdote about the confidence of executives in their upcoming SOX 404 “pass-fail” test. According to the survey, conducted by Waltham, Mass.-based Netegrity, when asked how likely it is that their company receive an unqualified opinion of their internal controls by their […]
Posted inInternal Controls
51 Internal Control Disclosures In May
According to a review of regulatory filings during the month of May, 51 companies disclosed material weaknesses or significant deficiencies in internal controls, or provided updates on the status of their control-improvement processes. That number is up from 39 similar disclosures in April, and 28 in March. (See box at right for previous months’ data). […]
Posted inInternal Controls
Risky Business: Assessing And Managing Risk
Management’s most important job is identifying, assessing and managing risk; how well it’s perceived to perform this role is often reflected in a company’s share prices. After shocking corporate defalcations, high-profile prosecutions, Sarbanes-Oxley’s passage and dozens of new regulatory requirements, focus on risk management has become clouded and diffused. This, in turn, often means management […]