Tag Archives | audit
The following is a guest post by by Sonia Jaspal from her blog, Sonia Jaspal’s RiskBoard, originally posted on June 12, 2012. I’ve added a few links, a couple of ads and reformatted the post slightly. Continue Reading →
Enterprise Risk Management (“ERM”) as a movement has been around for more than a decade. Unfortunately, a 2010 COSO survey disclosed that only limited progress has been made convincing senior management and boards that ERM is key to maximizing and safeguarding long term enterprise value, allocating expensive human and financial resources, or managing major risks to strategic and core business objectives. Continue Reading →
On May 8, 2012, Weil, Gotshal & Manges LLP’s Silicon Valley office hosted a one day symposium on Weathering a Crisis for corporate leaders and general counsel. Panel discussions focused on how to effectively handle a crisis before it becomes public; how to navigate the media while preserving your company’s public image; and how to implement sound strategic plans and compliance programs in order to avoid corporate wrong-doing.
Francine McKenna writes that Deloitte Shanghai refuses to turn over workpapers and documents relevant to the SEC in their investigation of Longtop.
“Chinese law prohibits Deloitte China from providing the requested documents directly to a foreign regulator,” said spokesperson Lauren Mistretta. “Deloitte China is caught in the middle of conflicting demands by two government regulators, and DTTL hopes that this matter will be resolved in a timely and sensible matter.” McKenna concludes:
The S.E.C. must consider how much longer they will allow companies to list in the U.S. if they honestly and clearly tell you they are out of the reach of U.S. courts when something goes wrong.
The PCAOB must consider how much longer they will allow foreign-based audit firms to produce audit opinions if the PCAOB can not inspect them and if home countries refuse to cooperate with U.S. regulators.
U.S. courts must consider how seriously to take claims by global audit firms that they were “duped” by foreign fraudsters when they Continue Reading →
The Financial Reporting Council, the UK financial reporting watchdog, wants shareholders to have more say in choosing the firms which audit corporate accounts.
The suggestion is among a raft of ideas the FRC is putting forward for debate in a bid to improve corporate reporting in the wake of the financial crisis. The FRC argues annual reports have become too cluttered, reducing their value for investors.
“There should be greater investor involvement in the process by which auditors are appointed,” the FRC said.
“We recognise that although shareholders confirm auditor appointments, management is perceived to determine the appointment (or reappointment) and remuneration of auditors and that, therefore, auditor independence is compromised.
“There is a case for the independence of the decision to be reinforced by the Audit Committee seeking greater shareholder involvement.” The comments come in the new Effective Company Stewardship: Enhancing Corporate Reporting and Audit report
There are two options. Either company audit committees should be required to explain why they appointed the auditor, or they could discuss the appointment “with a number of principal investors”- and then report on that consultation to shareholders generally… Responsible Investor.
There is, of course, a third option. Shareowners could select the auditor from a group of qualified contenders. For more on that option, see Proxy Voting Brand Competition by Mark Latham.