Parts of the Sarbanes-Oxley Act set barriers too high for accounting compliance and should be rolled back, New York Stock Exchange Group President Tom Farley told lawmakers during a congressional hearing. "The regulatory environment for public companies over the past 15 years has grown increasingly difficult to navigate," Farley said.
In the 15 years since Sarbanes-Oxley took effect, the hours spent on compliance have risen by more than 10% for 2 in 3 companies surveyed by Protiviti. Companies cited greater requirements for documenting process control for high-risk areas and the expanded classification of key controls as some of the reasons for the increase.
Weak internal controls against fraud are a prime reason for employee theft, write Tom Cooney and Crystal Faulkner of MCM CPAs & Advisors. The Association of Certified Fraud Examiners estimates that internal fraud costs a typical company 5% of its revenue annually, and such losses often are not recovered, Cooney and Faulkner write.
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The Financial Accounting Standards Board's revenue-recognition standard deadline for calendar year-end public companies is set for Jan. 1, and many are not adequately prepared, write Barbara Ard and Amy Hover of MorganFranklin Consulting. Key steps toward readiness for the new standard include thoroughly documenting the adoption process and engaging external auditors on the matter.
Legislators in California have approved a plan to keep the state's 5-year-old cap-and-trade program, under which companies must buy permits for greenhouse gas emissions, in place until 2030. The vote was bipartisan, although the measure did not have unanimous support among either Republicans or Democrats.
Several legal and regulatory developments involving whistleblower issues have emerged in recent months. Among the most recent is that the US Supreme Court will review whether retaliation is forbidden against internal whistleblowers who have not reported potential violations to the Securities and Exchange Commission.
A Deloitte online poll of 930 executives found that 41.3% of respondents said their companies had strong global ethics cultures. Meanwhile, 52.4% said companies' ethics had improved since the Sarbanes-Oxley Act was enacted in 2002.
The average economic losses from a worldwide cyberattack could reach as high as $53 billion, according to a report by Lloyd's of London and Cyence. Actual losses of such an attack could total as much as $121 billion, with underinsured organizations facing as much as $45 billion in losses that aren't covered, the report says.
Recognize Your Leadership Excellence If you are aspiring to be a leader in your organization, seeking a successor, or looking to add credibility to your current leadership role, The IIA's QIAL® program was designed with you in mind. Learn More
Deciding when it's time to make a career move is never easy, writes IIA President and CEO Richard Chambers. "There are so many factors involved in making career moves that there is no simple answer. ... [M]aking career decisions is more art than science, and it sometimes requires a degree of blind faith," Chambers writes.
Training On Your Terms Training and education play a critical role in your success as an internal auditor, and The IIA offers in-depth training through a variety of delivery options, including in-person, online, on-demand, and group training at your location. Read More
The IIA's CIA Learning System launches an update
July marks the update and alignment of the CIA exam and The IIA's CIA Learning System with the 2017 IPPF. The Learning System continues to be our most relevant and comprehensive study program for the CIA exam. Pre-order today.
Early savings end tomorrow for New York City training week
Members can take advantage of members-only pricing and early-registration savings on courses covering risk, fundamentals, cybersecurity, COSO, leadership and financial auditing while earning up to 32 CPE credits. Savings are available for San Francisco; Washington D.C.; Chicago; Las Vegas; and more this fall. Explore today.
There is no end. There is no beginning. There is only the infinite passion of life.
Federico Fellini, film director
About The Institute of Internal Auditors
The Institute of Internal Auditors (IIA) is the internal audit profession’s most widely recognized advocate,
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