What’s the difference between a reportable condition and a significant deficiency in your internal controls? Well, so far, that’s depended on whom you ask. A survey of SEC filings shows that companies are already confused about the terms. According to James DeLoach, managing director at internal auditing and risk consulting firm Protiviti, “The term ‘reportable […]
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Posted inAccounting & Auditing
What If Your Audit Gets Inspected By The PCAOB?
As you likely know, the Public Company Accounting Oversight Board will be conducting inspections of the Big Four and other accounting firms on a regular basis. However, if your company’s audit becomes the subject of a PCAOB inspection, you won’t find out from the Board. Sayther That’s according to Colleen Sayther, president and CEO of […]
Posted inAccounting & Auditing
Distilling SOX 302, 404 & 906
Since the Sarbanes-Oxley Act was passed in July 2002, most analysts in the field agree Sections 302 and 404 are the most complex and costly of what is widely regarded as the most onerous piece of the corporate governance legislation.
Posted inFrom the Archive
A Talk With GC And CCO Of $2.9 Billion Yellow Roadway
This profile is the fourth 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. Tell us about the position of chief compliance officer at Yellow Roadway. Well, I’d start by saying compliance isn’t a […]
Posted inInternal Controls
92% Of Internal Auditors Found Internal Control Gaps
In a recent survey of 200 internal auditors, over 90 percent reported significant gaps in their organization’s internal control framework. According to the survey, conducted by risk and compliance consulting firm Jefferson Wells International and the Institute of Internal Auditors, the greatest number of the respondents (34 percent) cited lack of process control-related documentation. Another […]
Posted inFrom the Archive
Are More Companies Adopting Voluntary Governance Changes?
Are more companies voluntarily making changes to their governance practices? It is starting to appear this way … maybe. In the past few weeks, a number of companies have taken it upon themselves to institute changes on a number of major issues that have recently been raised by investors, activists and governance specialists. For example, […]
Posted inFrom the Archive
Companies Starting To Change Stock Purchase Plans
A recent survey by Deloitte & Touche predicted that 30 percent of companies would reduce the use of employee stock purchase plans if FASB’s expensing proposal became effective. That may already be happening, partially in response to the FASB expensing proposal. According to Equilar, a San Mateo, Calif.-based company that tracks executive compensation, public companies […]
Posted inBoards & Shareholders
Directors’ Fees Are Up, But Compensation Isn’t The Key Issue
First gasoline, then milk … now say hello to the next business sector gripped by inflation: corporate directors’ fees. Cash compensation for directors surged at double-digit rates last year, according to a new survey of publicly traded companies. And it’s likely to keep escalating while corporate America digests the new managerial obligations spawned by the […]
Posted inAccounting & Auditing
European Union Publishes Audit Directive; Brits Respond
Last week, the European Commission proposed a “directive” aimed at creating a set of rules on how audits should be conducted throughout the EU. Among other items, the proposal would require companies to establish audit committees with independent directors to oversee the audit process, and would force auditors to publish annual “transparency reports” disclosing non-audit […]
Posted inFrom the Archive
The Cost Of Being Public In The Era Of Sarbanes-Oxley
Complete study by Foley Lardner that looks at the costs of being a public company in the wake of corporate governance reform.