Reposted from CFO.com The GDPR could affect almost every U.S. consumer goods and services company, and plenty of other organizations, that do business in the EU. The European Union’s General Data Protection Regulation, or GDPR, takes effect on May 25, 2018, and will have major implications for businesses with connections to Europe. GDPR is designed … Continue reading Why GDPR Matters
Troubling Friends, Family, & Relationships With the recent frauds and bad acts in the news I can't help wondering who was recruited or jumped on the wagon to help perpetuate the misbehavior. Here are some thoughts for the board, audit committee, general counsel, compliance, and internal audit to consider. Fraudsters seek out those who share … Continue reading Culture and Troubling Friends, Family, & Relationships…
Every U.S. company conducting or seeking business abroad is subject to the Foreign Corrupt Practices Act (FCPA) and it's no secret that 3rd party issues still present the highest risk under the FCPA. In fact, some say that 90%+ of reported FCPA cases involve third-party intermediaries! Yet many Boards and Audit Committees seem unsure as … Continue reading Audit Committee Primer on 3rd Party Risk Management
The audit committee plays an important role in navigating a restatement...
“If you don’t ask the right questions, you don’t get the right answers. A question asked in the right way often points to its own answer. Asking questions is the ABC of diagnosis. Only the inquiring mind solves problems.” – Hodnett Root cause analysis is a tool to help identify not only what and how an … Continue reading Fraud tip Friday! Root Cause and Critical Thinking…
Copyright 2018 - Jonathan T. Marks Lack of separation of the CHIEF COMPLIANCE OFFICER (CCO) and the GENERAL COUNSEL (GC) has been cited as a cause of numerous corporate mishaps or failures. In fact, separation is now the norm in Health Care organizations. In spite of numerous recommendations to separate the two functions, there is … Continue reading Chief Compliance Officer v. General Counsel – Should They Be Separate?
Audit committees (AC) are charged with overseeing financial reporting and audit processes in U.S. public companies. Scandals in the pre-Sarbanes-Oxley Act of 2002 (SOX) era (e.g., Enron, Global Crossing, Tyco International, and WorldCom) demonstrated that corporate governance could be compromised, resulting in fraudulent financial reporting (FFR). Among the provisions of SOX, Section 407 required companies to … Continue reading Audit Committees, Internal Audit, and Fraud Risk
On January 25, 2018, the Associate Attorney General directed the Department of Justice (DOJ) not to rely on agency guidance documents to establish a violation in affirmative civil enforcement (“ACE”) cases. Agency guidance documents include letters to industry, policy manuals, handbooks and FAQs. Affirmative Civil Enforcement ("ACE") refers to filing civil lawsuits on behalf of … Continue reading DOJ Limits Use of Guidance Documents in Affirmative Civil Enforcement Actions
Source: WSJ The Justice Department urged its lawyers to weed out merit less cases from the hundreds of suits brought on its behalf under an anti-fraud law called the False Claims Act. Justice Department attorneys should consider using a provision in the False Claims Act that lets the department ask a judge to dismiss claims, … Continue reading U.S. Looks Toward Gatekeeper’s Role on Whistleblower Claims
https://www.wsj.com/articles/when-to-use-the-ceo-as-crisis-spokesman-1516965013 Knowing whether to deploy the chief executive as its public face during a crisis is a tricky question for a company to answer but two recent research papers say there are times when it is more advantageous to do so. The first paper, published in December in the Journal of International Management, found the … Continue reading When to Use the CEO as Crisis Spokesman
Recent aggressive, anti-bribery actions by various governments are indicative of new challenges that businesses with global operations or supply chains are encountering. Although the U.S. Foreign Corrupt Practices Act (FCPA) has been the preeminent anti-corruption law for most companies with international operations or financial ties, in recent years other countries have become assertive in enforcing … Continue reading Beyond the FCPA Strong Internal Controls and Effective Internal Audit are Critical Factors in Global Anti-corruption Efforts