Jul 18
The Securities and Exchange Commission (“SEC”) recently announced three new enforcement initiatives in its ongoing fight against fraud: “The Financial Reporting and Audit Task Force dedicated to detecting fraudulent or improper financial reporting, whose work will enhance the Division’s ongoing enforcement efforts related to accounting and disclosure fraud. The Microcap Fraud Task Force targeting abusive trading …
Permanent link to this article: https://betweenthenumbers.net/2013/07/sec-announces-new-anti-fraud-initiatives/
Jul 17
In Lockheed Martin Corp. v. Brown, No. 11-9524 (10th Cir. Jun. 4, 2013), the Tenth Circuit supported a broad interpretation of the claims that are protected under the anti-retaliation provisions of the Sarbanes-Oxley Act. The Tenth Circuit broadly described the case as follows: “Lockheed Martin Corp. (“Lockheed”) seeks to set aside a decision of the …
Permanent link to this article: https://betweenthenumbers.net/2013/07/use-of-internal-personnel-for-whistleblower-reporting-costs-employer-in-tenth-circuit-case/
Jul 09
In 2011, the Public Company Accounting Oversight Board (“PCAOB”) issued a Concept Release on Auditor Independence and Audit Firm Rotation, seeking public comment on: “ways that auditor independence, objectivity and professional skepticism could be enhanced. One possible approach on which the Board is seeking comment is mandatory audit firm rotation.” Apparently, the House of Representatives had a …
Permanent link to this article: https://betweenthenumbers.net/2013/07/house-prohibits-mandatory-audit-firm-rotation/
Jul 02
The Financial Accounting Standards Board (“FASB”) recently issued a proposal to improve practices surrounding the responsibility for assessing and reporting whether an entity is a “going concern”. Financial statements prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) have an inherent presumption that the entity is able to continue with its operations, realizing its assets and honoring its …
Permanent link to this article: https://betweenthenumbers.net/2013/07/fasb-stepping-in-on-going-concern-assessments-and-disclosure/
Jun 28
The Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) has released an updated Internal Control – Integrated Framework in the fight against fraud. It provides expanded practical advice regarding effective implementation of internal controls. COSO is a joint initiative of five private sector organizations with a shared interest in enterprise risk management, internal control and fraud …
Permanent link to this article: https://betweenthenumbers.net/2013/06/new-guidelines-for-fraud-deterrence/
Jun 11
The AICPA has issued a new Financial Reporting Framework (“FFR”) for Small and Medium Sized Entities (“SMEs). These smaller enterprises are often not required to prepare financial statements in accordance with Generally Accepted Accounting Principles (“GAAP”). Yet all financial statements are presented in accordance with some financial reporting framework, however defined. This new FFR provides …
Permanent link to this article: https://betweenthenumbers.net/2013/06/aicpa-issues-financial-reporting-framework-for-small-and-medium-sized-entities/
May 31
Even after the increased regulation associated with the Sarbanes-Oxley Act (SOX) in July 2002, the audit profession continues to deal with questions of whether they are truly independent from the companies who employ them and overall audit effectiveness. A recent report commissioned by the Center for Audit Quality (“CAQ”) specifically examines Securities and Exchange Commission …
Permanent link to this article: https://betweenthenumbers.net/2013/05/battling-auditor-enabled-fraud/
May 25
A recent study in The Journal of Financial Economics suggests that a compensation structure that relies on financial performance measures can be tied to incidences of fraud. Generally, the study concludes that individuals are more likely to engage in financial misstatements when the there is little downside and high upside. The implication is that this relationship can have …
Permanent link to this article: https://betweenthenumbers.net/2013/05/7613/
May 21
Banking is changing these days. You don’t even need to go into the bank to deposit checks anymore, you can do it right from your smartphone. Even if you go into the bank, certain banks have ATM or other sophisticated computer modules in order for you to handle transactions so you do not have to …
Permanent link to this article: https://betweenthenumbers.net/2013/05/atms-robbed-no-guns-involved/
Feb 15
The Federal Trade Commission (FTC) issued a report on January 30, 2013 regarding the debt buying industry and the related debt collection efforts of the buyers. The FTC indicated that this is the first major empirical study of debt buying and related collections. Debt buying and related collection practices are of concern. The FTC states: …
Permanent link to this article: https://betweenthenumbers.net/2013/02/ftc-study-on-debt-collection-buying-hints-at-need-for-greater-regulation/
