Another Example of Spreadsheet Risk

spreadsheet

We missed this until now, but a Radical Compliance fan passed along this item for all you internal accounting control enthusiasts: a water development business in Colorado that recently had to correct its financial statements because of sloppy spreadsheet controls. The company in question is Pure Cycle Corp. ($PYCO), which sells water and wastewater services…

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On Booting Chinese Firms Off U.S. Exchanges

Chinese

Amid the many executive orders and memoranda President Trump has ballyhooed lately, let’s not forget this sneaky little number: a proposal that Chinese businesses listed on U.S. stock exchanges must submit to U.S. auditing standards.  Right now, Chinese firms don’t have to do that. Rather, they can publish financial statements audited by Chinese audit firms;…

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SEC to Vote on 404(b) Exemptions

sox

Well, here we go: the Securities and Exchange Commission will vote next week on a proposal to exempt companies with less than $100 million in annual revenue from audits of their internal control over financial reporting.  The meeting will happen on March 11, and so far the internal control exemption is the only item on…

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More on SOX 404(b) Compliance

sox

SEC officials dropped a few more hints this week about their thinking on Sarbanes-Oxley compliance, including when we’ll see the agency move to exempt more companies from Section 404(b) of the law — the provision that requires annual audits of a company’s internal control over financial reporting. Said hints came from Bill Hinman, director of…

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Report: SOX Compliance Still a Pain

sox

Internal auditors might want to look at a new report on Sarbanes-Oxley compliance that paints a rather drab picture of things these days: SOX compliance duties crowding onto your plate, costs going up, and compliance teams adopting new technology at a pace less than people might like.  The report, from the SOX Professionals Group and…

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SOX Compliance: Costs Down, Hours Up

sox

Protiviti has released its annual study of SOX compliance costs — a mixed picture where compliance costs are drifting downward overall, even while the hours spent doing SOX compliance work are on their way up. The report polled nearly 700 finance or audit executives. Frankly, the statistics about SOX compliance costs don’t tell us much,…

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SEC Preps SOX 404(b) Rollback

sox

The Securities and Exchange Commission will move forward next week with long awaited, but totally not surprising, plans to raise the threshold for accelerated filer status —  a move that will pave the way for more companies to avoid outside audits of their internal control over financial reporting. The SEC posted a notice that it…

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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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Regulatory Reform Bill — Ignores SOX!

compliance

The House of Representatives passed a significant regulatory reform legislation Tuesday — and while the bill’s fate in the Senate is unclear, compliance professionals should examine what’s not in the bill. That tells us a lot about how regulatory reform will probably unfold in 2018 and 2019 anyway. The legislation, formally known as the Jobs…

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SEC Starts Regulatory Reform Push

enforcement

The Securities and Exchange Commission began moving forward this week on its ambitions to craft a more business-friendly regulatory regime, starting with plans to exempt many more companies from compliance requirements and to cap potential rewards to whistleblowers. Most notable for ethics and compliance officers, the commissioners voted (along the predictable 3-2 partisan split, favoring…

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