Culture and Troubling Friends, Family, & Relationships…

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…

Audit Committee Primer on 3rd Party Risk Management

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

Fraud tip Friday! Root Cause and Critical Thinking…

“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…

Chief Compliance Officer v. General Counsel – Should They Be Separate?

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, Internal Audit, and Fraud Risk

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

DOJ Limits Use of Guidance Documents in Affirmative Civil Enforcement Actions

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

U.S. Looks Toward Gatekeeper’s Role on Whistleblower Claims

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

When to Use the CEO as Crisis Spokesman

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

Beyond the FCPA Strong Internal Controls and Effective Internal Audit are Critical Factors in Global Anti-corruption Efforts

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

The Morning Risk Report: Survey Highlights Compliance Dangers

Fewer than one in five com­panies give com­pli­ance staff sub­stan­tive roles in han­dling ma­jor merg­ers, and more than half have un­re­solved com­pliance prob­lems that reg­u­la­tors have yet to dis­cover, ac­cord­ing to a sur­vey of 537 com­pa­nies with an­nual U.K. rev­enue of at least £1 bil­lion ($1.4 billion). Com­pli­ance ex­perts say those find­ings from law firm Baker … Continue reading The Morning Risk Report: Survey Highlights Compliance Dangers

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