Permanent link to this article: https://betweenthenumbers.net/2014/07/over-100-billion-in-improper-federal-payments-occur-each-year/
Jul 11
The U.S. Government Accountability Office (“GAO”) recently issued “Management Report: Improvements Are Needed to Enhance the Internal Revenue Service’s Internal Controls”, describing how the Internal Revenue Service (“IRS”) continues to have internal control deficiencies, both new and old. The purpose of the report is to present internal control deficiencies identified during the GAO’s audit of …
Permanent link to this article: https://betweenthenumbers.net/2014/07/internal-control-failings-at-the-irs/
Jun 20
With its new audit standards and amendments aimed at specific transaction types, the Public Company Accounting Oversight Board (“PCAOB”) has targeted three critical areas in its ongoing efforts to combat financial reporting fraud. A more comprehensive article found here describes the new rules to heighten auditor scrutiny regarding (i) related-party deals, (ii) significant unusual transactions, …
Permanent link to this article: https://betweenthenumbers.net/2014/06/new-rules-aimed-at-increasing-auditor-scrutiny-of-critical-fraud-areas/
Jun 16
The Securities and Exchange Commission (“SEC”) filed a claim stating that DGSE Companies Inc. (“DGSE”) and its former chief financial officer (“CFO”) engaged in accounting fraud by manipulating inventory accounts. DGSE transacts in jewelry, diamonds, fine watches, rare coins, precious metals and other collectibles and valuables. DGSE’s CFO allegedly made numerous false accounting entries that …
Permanent link to this article: https://betweenthenumbers.net/2014/06/better-accounting-controls-would-likely-have-prevented-inventory-fraud-at-jewelry-company/
May 15
In the matter of Division Entertainments, LLC and Wicks Walker v. Spring Breakers LLC and Muse Productions, Inc. et al., Mr. Walker asserts that he was denied a return of his investment, along with an additional profit, because of Defendants’ breach of contract via improper business practices and faulty accounting. Mr. Walker, a technology entrepreneur …
Permanent link to this article: https://betweenthenumbers.net/2014/05/spring-break-turns-sour-for-investor/
Apr 09
Economic crime is increasingly plaguing U.S. firms according to a recent survey by PWC. Key findings include: “45% of organizations in the U.S. suffered from some type of fraud in the past two years, more than the global average of 37%. More than half of U.S. organizations that experienced fraud in the last two years reported an …
Permanent link to this article: https://betweenthenumbers.net/2014/04/fraud-on-the-rise/
Mar 26
A New Jersey man recently entered a guilty plea for his ongoing theft of quarters derived from parking meters. The individual, who had access to the room where the parking meter change was kept, took “handfuls” of change on a regular basis over approximately two years. At the end of the period, the theft had …
Permanent link to this article: https://betweenthenumbers.net/2014/03/quarter-theft-stacks-up/
Mar 25
Protiviti’s 2014 Internal Audit Capabilities and Needs Survey Report queried more than 600 internal audit professionals about the social media risks that threaten their businesses. The five largest are: Financial loss Interrupted business continuity Loss of intellectual property Loss of employee productivity Viruses and malware However, despite this awareness of the risks, many companies are still not adequately …
Permanent link to this article: https://betweenthenumbers.net/2014/03/internal-audits-top-priorities-include-social-media/
Mar 17
The Supreme Court has held in the case of Lawson v. FMR LLC that the whistleblower protection available under the Sarbanes-Oxley Act of 2002 (“SOX”) properly extends to employees of privately held contractors and subcontractors who perform work for a public company. Although the case in question was brought by employees of advisors to a …
Permanent link to this article: https://betweenthenumbers.net/2014/03/sox-whistleblower-protection-extend-to-certain-private-company-employees/
Mar 05
In association with general cost cutting measures over recent years, many companies have pressured their vendors to reduce fees. This downward pressure has extended to the accounting firms hired to provide independent audit opinions, resulting in a significant drop in audit fees. According to Audit Analytics, audit fees in 2012 were $472 per $1 million …
Permanent link to this article: https://betweenthenumbers.net/2014/03/reducing-audit-fees-increases-restatement-risk/
Jul 18
Over $100 Billion In Improper Federal Payments Occur Each Year
July 18, 2014
The U.S. Government Accountability Office (“GAO”) testified before Congress to describe the breakdown of over $100 billion of improper federal payments in 2013. Such errors included tax credits for those not entitled to them, unnecessary Medicare payments, and unemployment benefits for “under the table” workers, among others. Shockingly, these types of monumental errors are generally repetitive and …
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