Board and Fraud is a blog that aims to bring a practical approach to issues facing the board of directors and the audit committee specifically in the area of governance, risk management, compliance, and internal audit, with a strong focus on fraud, ethics, and internal controls.
Developed by: Jonathan T. Marks
Background
The concept of Internal Control appeared as a practice in the USA at the beginning of the 20th century, whereas in the economic literature
Establishing and supporting a corporate compliance program is widely recognized as one of the fundamental responsibilities of a corporate board of directors. But merely seeing that there is a compliance program in place is by no means an adequate effort. The Board must also actively oversee that function.
Active oversight is essential if a company’s business plan includes strategies, practices, or other elements that could be considered high-risk. Such situations call for even more involvement and active engagement by the Board.
We are introducing our first annual virtual Baker Tilly Fraud and Compliance Summit, hosted by Jonathan T. Marks, who leads Baker Tilly’s Global Forensic, Compliance, and Integrity Services Practice.
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Happy New Year, and thank you to the more than 100,000 people that visited Board and Fraud in 2020!
With everything that happened last year, fraud, compliance, and risk management have arguably become more important than ever.
The risk of fraud is a serious concern for all types of enterprises, but fraud can be particularly damaging to a nonprofit or not-for-profit organization, for which a damaged reputation can have devastating consequences.
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On March 12, 2020, the Securities & Exchange Commission adopted a controversial rule that exempts more categories of public companies from auditor attestation of management’s internal control over financial reporting required by Section 404(b) of the Sarbanes-Oxley Act of 2002, despite strong opposition by investor protection advocates.
The rules are intended to benefit low revenue companies even if the funds raised in the public stock markets are not small, according to, Release No. 34-88365, Amendments to the Accelerated and Large Accelerated Filer Definitions. The amendments become effective 30 days after publication in the Federal Register, which normally occurs a few weeks after a rule is posted on the SEC’s website.
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This one-day fraud symposium, sponsored by Baker Tilly’s Global Forensic, Compliance and Integrity Services, and Solutions Practice Group and hosted by the Institute of Internal Auditors, Philadelphia Chapter, will include topics such as:
•Culture
•Current trends in white-collar crime
•Tone is the middle
•Policy management
•Case study on a local fraud
Discover who will be speaking and register for the event!
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Welcome to my site. I have spoken and been the keynote speaker for many conferences, including the ABA, ACC, ACFE, IIA, and IMA to name a few. I have designed customized training for the board, senior leadership, legal, compliance, internal audit, and others for some of the world’s largest organizations.
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Background The Securities and Exchange Commission (“SEC”) announced that Westport Fuels Systems, Inc. (Westport”), a Canadian clean fuel technology company headquartered in Vancouver, Canada, and its former chief executive officer,
“Trust but verify” could be a downright dangerous approach when applied to audit procedures in particular. A much better slogan for fraud deterrence would be, “Trust is a professional hazard.”
The implication is that because financial management plays a leading role in detecting financial fraud, it is incumbent on executives – not just auditors – to exercise appropriate levels of professional skepticism. Board members and particularly audit committee members also must take care to exercise a skeptical approach to financial reports and supporting information.
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We just confirmed our first awesome speaker Niki A. den Nieuwenboer, Assistant Professor of Organizational Behavior and Business Ethics at The University of Kansas School
As the use of whistleblower programs continues to grow, many organizations find themselves struggling to manage burgeoning caseloads. As a result, serious fraud investigations can be delayed (with mounting
With the help from a true friend, Tom Fox, I am entering the world of Podcasting. I will be developing at least three Podcasts per
Register here!
Announcing the next offering of the Doing Compliance Master Class. Tom Fox is partnering with Jonathan T. Marks from Baker Tilly
If you think Good Tone or Conduct from the Top means you have an ethical environment, guess again!
Some of your people are up to no good.
Train and
Corruption can take many forms, but its root cause could and often does include a conflict of interest of some sort and possibly collusion.
OECD states, Conflict of interest
Investigation Roundtable on January 23, 2019, in Center City Philadelphia
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As the organization’s ultimate decision-making body, the board of directors plays two critical roles: overseeing management on behalf of shareholders and other constituencies; and advising management, albeit with limited involvement in everyday company operations – nose in, hands off! The board should not attempt to run the operations of the organization; it should oversee how management runs the company.
I am amazed at how many members literally are not engaged, which reminded that one of the traits of an effective leader, or Pilot, is being a good team builder. But how can you build a good team if you don’t understand the players? I’m not speaking about understanding their skills, I am speaking about understanding their level of engagement. That amorphous concept most ignore.
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At a minimum, as part of (emphasis added) your overall fraud risk management program, the following key processes/functions should be analyzed along with the embedded (key) internal controls,
Contacts:
Kendra Klossner
Baker Tilly Media Relations
kendra.klossner@bakertilly.compress@bakertilly.com
(703) 923-8627
Marks brings over 30 years of forensic accounting, investigations, governance, risk management and compliance experience to one of
The Department of Justice (DOJ) said in a release, “Executives at the highest levels of Petrobras — including members of its executive board and board of directors — facilitated the
While we can’t get into the mind of the white collar criminal, we can take a closer look at high-profile individuals who have perpetrated massive fraud at corporations and instances of fraud identified in practice, as well as some research, to help is identify a pattern of similar behavioral elements common to white-collar crooks and cultural elements common to their environments.
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Boards and Audit Committee members this is a public service announcement.
You should be really digging in and asking why an investigation was shut down.
That is all!
The IIA Philadlephia is proud to announce the addition of Chelsea Binns, PhD, Assistant Professor at John Jay College of Criminal Justice, to its line up of presenters at the
Many companies have an idea, albeit vague, about ERM or enterprise risk management. But few have made real progress in planning or actual implementation. What is the holdup? A practical five-step approach can help companies get their arms around ERM … and begin to realize the benefits of integrated risk management, including escalating the right risks to the right people in a timely manner, and as a result, drive meaningful conversations with leaders to inform decision-making.
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