As a securities broker, Morgan Stanley, which is facing a possible $10 million fine from the Securities and Exchange Commission for failing to keep certain email (see related coverage at right), is subject to tougher record-retention requirements under the Securities Exchange Act than other public companies. Similarly, investment advisers also have enhanced obligations under the […]
Technology
Posted inInternal Controls
Getting Through A SAS 70 Audit: First-Hand Experience
In the wake of Section 404 of Sarbanes-Oxley, Compliance Week has written extensively about SAS 70 Type II audits. (see coverage below, right.) The audits have become increasingly important for some public companies; management has to assess the effectiveness of the company’s internal control over financial reporting, and critical outsourced services that might materially impact […]
Posted inTechnology
Case Study: Entity, Document Management At Valeant
This “case study” is the latest in a series of articles aimed at helping public companies understand how other organizations are using technology to comply with new regulations and standards. These are not advertisements or marketing vehicles for the companies mentioned; Compliance Week’s editorial staff speaks with the public company that has deployed the technology, […]
Posted inInternal Controls
Spreadsheet Blues: Few Controls Yield Many Weaknesses
Hussain Hasan, managing director of technology risk management services at the Chicago accounting firm RSM McGladrey, does not mince words when discussing how poorly spreadsheets satisfy the requirements of The Sarbanes-Oxley Act of 2002. “They don’t at all,” Hasan says. “Most public companies should not use spreadsheets as their main financial tool.” Hasan Such criticism […]
Posted inTechnology
Non-Profit To Develop Whistleblower Hotline Standards
Thanks to Sarbanes-Oxley, whistleblower hotlines are a hot topic for public companies. But what’s the best way to manage a hotline? And how can a company measure whether its hotline is effective? A coalition of governance experts has taken the first step toward answering those questions. The non-profit Open Compliance and Ethics Group, which recently […]
Posted inData Privacy
Email Security Poses IT And Compliance Obstacles
In the world of compliance, securing email is a lot like sex: everybody does it, few discuss it, and none really know whether their technique is quite right. By comparison, many other compliance challenges pose relatively simple obstacles for IT staff. A finance application, for example, can be sealed off from workers without proper access […]
Posted inTechnology
Lost At The Intersection Of IT Security And Compliance
Pedro Carrera thought he had stitched together a pretty secure information technology system at RailAmerica Corp. over the last few years. In fact, Carrera—SAP manager at the $395.6 million regional rail service provider—had even installed advanced systems to facilitate continuous monitoring of the company’s security and controls. Of course, that’s precisely when Carrera discovered just […]
Posted inTechnology
So Far, XBRL Participants Are Those Who Stand To Benefit
Now that the Securities and Exchange Commission has officially encouraged corporations to file financial statements using intelligent “XBRL” formatting, you might think the “Next Big Thing” in financial reporting has arrived. You would be wrong. Despite prodding from information technology vendors and the SEC’s first tentative steps to embrace it, most chief financial officers still […]
Posted inTechnology
Closing The Books & Compliance: Spreadsheets A Problem
Is there a governance issue when a company takes a long time to close its books? We’re not talking about being so late that it must file for an extension. We mean, taking more time than it should if it simply implemented certain changes? Some experts believe the answer is yes. According to a recent […]
Posted inTechnology
Spreadsheet Of Compliance Providers And Clients
Downloadable Excel spreadsheet includes a list of recent “customer wins” by providers offering compliance-related products and services to U.S. public companies.