Posts Tagged ‘internal control’

SEC Hits Firms on Internal Control

internal control

The Securities and Exchange Commission dinged four companies on Wednesday for poor internal control over financial reporting — a clear warning to companies that simply disclosing a material weakness in ICFR is not sufficient to fulfill a company’s compliance duties. Executives actually have to fix the problem, and not take too long to do so.…

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Of Blown Calls and Internal Control

internal control

Effective internal control can be a difficult subject to understand, so ethics and compliance officers who hail from the legal world should be delighted right now. A great example of internal control issues gone awry fell into our laps this week from the world of sports. I speak, of course, of the blown referee call…

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Deloitte Inspection Report Released

Deloitte

The PCAOB has released its latest inspection report for Deloitte, finding that 20 percent of the audits examined were flawed enough to question whether auditors had reached defensible conclusions. This is the first inspection report we’ve seen this year for a Big 4 firm, and also the first one issued since new leadership took over…

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Hertz, Estimates, and Internal Controls

Hertz

Who says a government shutdown means no news for internal control and compliance? On New Year’s Eve the Securities and Exchange Commission served up another juicy enforcement action, hitting Hertz Corp. with a $16 million penalty for sloppy accounting practices that led to a financial restatement in 2015. The case is worth a look because…

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Food Company Cooks the Books

Hain

The SEC settled charges with an organic foods company on Tuesday over internal control failures that led to several years of revenue manipulation, in a case with multiple lessons for the internal control community. We don’t see an internal controls case this large come along every day, so let’s digest. First, the background. The accused…

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Automation & Control Lessons in Latest SEC Enforcement

automation

We have an interesting enforcement action from the Securities and Exchange Commission this week, where the agency dinged a telecom company and its former executives $1.9 million for misleading statements on revenue projections. The kicker: it looks like the company’s own sales automation software created the audit trail that painted the company into an enforcement…

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Why ‘Michael Cohen Risk’ Still Matters

Cohen

Over the weekend an ethics and compliance leader emailed me. This person has long, substantive experience in the field, and speaks about corporate compliance often; you would recognize the name immediately. The person had a question. Other than Radical Compliance, is anyone else talking about Corporate America’s suspicious payments to Michael Cohen, personal lawyer to…

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SEC on Current Accounting Issues

SEC

Spring is here, and that means one thing for financial reporting: the annual financial reporting conference at Baruch College in New York, where SEC chief accountant Wes Bricker shows up and tells us what issues are on his team’s mind as they read all your SEC filings. This year was no exception. The conference happened…

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Compliance 101: Manual vs. Automated Controls

Here at the Radical Compliance home office, every morning my job is to rouse my toddler son from bed, make him breakfast, and take him to preschool. As winter approaches here in New England, that also means ensuring that he’s properly dressed for cold weather. Little did I know that such a simple exercise is…

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TEC 2017: Importance of Reliable Data

data

Workiva’s TEC 2017 conference opened on Tuesday with a group of CFOs fretting about data—and, when you think about it, who can blame them? Companies are drowning in data. CFOs, CEOs, and other senior leaders spend far more time than they should simply confirming the authenticity and accuracy of it. The morning session even featured…

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