In this episode I visit with Sean Freidlin, the Senior Product Marketing Manager, Compliance at Hanzo. We take a deep dive into the state of compliance investigation in 2019, focusing on the impact of the Evaluation of Corporate Compliance Programs on investigations. For more information, Hanzo has published the following work, “THE 2019 GUIDE TO INTERNAL INVESTIGATIONS FOR COMPLIANCE-An eBook on Planning, Protocols, Data Collection, Triage, and Remediation” on which I collaborated. (The eBook was sponsored by Hanzo.) The eBook provides the compliance professional with multiple tools, strategies and tactics for the entire lifecycle of investigations; from initial intake through remediation. I know that you will find it incredibly useful. You can download it here.
Day: June 26, 2019
In today’s edition of Daily Compliance News:
- Recidivist TechnipFMC settles FCPA enforcement action. (FCPA Blog)
- Merrill Lynch settles market manipulation charges. (WSJ)
- We want to comply but can’t. (Washington Post)
- US chip companies still selling to Huawei. (NYT)
Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt Kelly (the coolest guy in compliance) and I take things in a different direction as we welcome Francine McKenna, reporter at MarketWatch. And blogger extraordinaire at Re: The Auditors. After one full week of writing, thinking and talking about the SEC enforcement action against KPMG, we provide our initial reflections.
McKenna discusses:
- Is the total fine only Starbucks money for KPMG?
- Why no one had an inkling of this cheating scandal in addition to the PCAOB scandal.
- Why will the SEC will go out of its way not to put KPMG out of business?
- What are the federal government audit assignments KPMG currently holds?
- How should recalcitrant KPMG employees be disciplined?
- Can the KPMG culture be turned around?
Kelly discusses:
- Who will be the monitor and what will be their scope? What will they do?
- How do you hold accounting firms accountable?
- Channeling his inner Dean Wormer, Kelly asks if KPMG is now on a double Cease and Desist Order?
- Can KPMG keep public confidence going forward?
- Did Jay Clayton’s summer 2018 comments include any knowledge of the cheating scandal?
Fox discusses:
- Was it negligent or intentional conduct involved?
- How heavy is the shadow of Arthur Anderson in this matter?
- Why the government will use all means possible not to put KPMG out of business?
- KPMG in currently involved in multiple scandals, in at least 3 separate continents. Where and when will it end?
- Is it time to break up the Big 4?
- Is this fine really even a meaningful sanction?
For additional reading, check out the following resources:
You should start with McKenna’s great piece on the scandal in MarketWatch, “The KPMG cheating scandal was much more widespread than originally thought”
Matt’s blog post-Questions on the KPMG Ethics Fiasco
Tom’s blog post-Day of Reckoning for KPMG-Failures in Ethics
In this episode of Trekking Through Compliance, we consider the episode Errand of Mercy which aired on March 16, 1967, Star Date 3194.8.
Compliance Takeaways:
- In an investigation, trust but verify.
- If your subsidiary’s financial statements are too complicated to decipher, you have a problem.
- Do you know how far down your TPIs extend?
