Understanding internal controls over financial reporting (ICFR) is very important for the implementation of the new Dodd Frank Act.
And, who really understands internal controls? Yes, Sarbanes Oxley professionals. Absolutely.
Today we will spend some time to understand the Dodd Frank Act, and the new ICFR environment and requirements.
Some interesting developments:
According to the Sarbanes-Oxley Act, publicly traded companies cannot punish employees that reveal suspected fraud.
Reveal to whom?
Can you reveal suspected fraud to the media?
Today we have a clear answer: No, you are not protected if you reveal suspected fraud to the media.
According to the Ninth U.S. Circuit Court of Appeals, you are protected if you speak to federal regulators, Congress or a workplace supervisor - to those with "the capacity or authority to act effectively on the information" as Judge Barry Silverman said in the court's ruling.
Leaks to the media are not protected.
The ruling has to do with the well known case of two Boeing Co. auditors who were fired in 2007, after telling a reporter that they were being pressured to deliver favorable reports about the security of Boeing's internal computer software.
According to the Boeing spokesman John Dern, the ruling supported corporate policies that require employees to keep internal information confidential.
Another interesting development:
James R. Doty has been appointed by the Securities and Exchange Commission as the Chairman of the Public Company Accounting Oversight Board.
About the Author
Sarbanes Oxley News, May 2011 - The Sarbanes Oxley Compliance Professionals Association (SOXCPA) is the largest Association of Sarbanes Oxley professionals in the world - http://www.sarbanes-oxley-association.com -
George Lekatis is the General Manager and Chief Compliance Consultant of Compliance LLC, a leading provider of risk and compliance training and executive coaching in 36 countries.
George has more than 17,000 hours experience as a professional speaker and seminar leader. He has worked for more than 15 years as a management consultant and educator and has demonstrated exceptional presentation and communication skills.
George is the president of the Basel ii Compliance Professionals Association (BCPA, www.basel-ii-association.com), the largest association of Basel ii professionals in the world, the Basel iii Compliance Professionals Association (BiiiCPA, www.basel-iii-association.com), the largest association of Basel iii professionals in the world, the Sarbanes Oxley Compliance Professionals Association (SOXCPA, www.sarbanes-oxley-association.com), the largest Association of Sarbanes Oxley professionals in the world, and the Solvency II Association (www.solvency-ii-association.com), which is also the largest Association of Solvency II professionals in the world.
George is an expert witness, qualified to investigate and testify about risk and compliance management standards, policies, procedures, best practices, due care and due diligence.
President of the Sarbanes Oxley Compliance Professionals Association (SOXCPA)
General Manager and Chief Compliance Consultant, Compliance LLC
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