PCAOB Alert on Audits, External Data

pcaob

The PCAOB published fresh guidance last week about how auditors should handle evidence supplied by others to help the auditor assess financial statements, important performance or valuation metrics, and, well, all the other stuff that can go into an audit report these days.  The guidance is formally titled “Evaluating Relevance and Reliability of Audit Evidence…

Read More

Thoughts on AI From the Audit Perspective

AI

The other week I had a post about the risk management challenges corporations will face as they integrate artificial intelligence into business operations. Several days later, my friend the Cybersecurity Auditor called me. “Dude,” he said, “I have many issues with AI and I think we’re missing another important point here.” OK, I replied, and…

Read More

PCAOB Stands Pat on Data Analytics

pcaob

The PCAOB released an update Thursday on its thinking about how to use data analytics and related technologies in financial audits, and it seems that the regulator will maintain for now its belief that no new auditing standards to address technology are necessary. For several years now, the PCAOB has run a small task force…

Read More

Headaches on ICFR and Better Tech

ICFR

My phone rang the other day, and on the line was my friend the tech vendor. He was calling to tell me about new whiz-bang software his firm is developing to identify internal control issues — and within a few minutes, we stumbled into a dilemma about effective internal controls that needs attention. Hear me…

Read More

Novartis Settles FCPA Case for $345M

fcpa

Swiss pharmaceutical giant Novartis is paying $345 million to settle civil and criminal FCPA charges for misconduct in Greece, Korea, and Vietnam. As usual, compliance professionals have an abundance of lessons to learn about internal controls, policies and procedures, and effective compliance programs.  The breakdown is $233 million to the Justice Department for the criminal…

Read More

DOJ Hints at New Enforcement Ideas

compliance

The Justice Department is considering new approaches to handle companies that can’t pay monetary penalties as part of a corporate misconduct settlement; and is also warning securities and commodities traders to step up the data analytics they do to uncover market abuses. So said deputy assistant attorney general Matthew Miner during a speech he delivered…

Read More

A Better Understanding of Estimates

estimates

Last month the PCAOB published fresh guidance on how to audit accounting estimates. Today let’s take a deeper look at what that guidance says, because the principles it recommends can be quite useful for compliance and risk officers too. To begin with the obvious: Yes, this guidance is written for audit firms that are inspecting…

Read More

Questions on KPMG Compliance Survey

KPMG just published a survey of chief compliance officers that’s chock full of numbers and charts telling where CCOs plan to take their compliance programs in 2019. It’s well worth your time to read — although, to my reading, some of the findings don’t quite add up. The survey polled 220 chief compliance officers at…

Read More

Making Compliance Analytics Work

compliance

Compliance officers spend more and more time these days thinking about data — how to collect it, how to study it, how to report it. So while I attended the Global Ethics Summit in New York this week (excellent event), I dropped into a panel discussion about how compliance officers can build more effective, data-driven…

Read More

Talking Compliance Analytics at AB-InBev

analytics

We have another Radical Compliance podcast today, this time looking at data analytics and integration challenges at the largest beer brewer in the world: Anheuser-Busch InBev. For anyone considering more analytics in your compliance program (which should be all of you) this chat with Matt Galvin, vice president of ethics and compliance at AB-InBev, is…

Read More