Categories
Wirecard

Monkeys in Suits

Welcome to Season 3 of Lies, Spies & Corporate Crimes: The Wirecard Saga. The Wirecard Saga, has become of the world’s leading sources on all things Wirecard. In Lies, Spies & Corporate Crimes: The Wirecard Saga; Mikhail Reider-Gordon, Managing Director of Institutional Ethics & Integrity at Affiliated Monitors looks at the biggest financial scandal in post-war Germany from a variety of angles.  In this episode, Mikhail brings us all up to date on the status of the court cases.

Some of the highlights include:

  • An entire Criminal Chamber for Wirecard
  • Does Braun have the sitzfleisch?
  • Bellenhaus’s selective memory
  • Just who exactly was falsifying the documents?
  • Bellenhaus beats back his better angels
  • A 500% raise demand
  • EY had two brushes with the fraud
  • Auditors give up public accounting licenses and
  • Apas closes its investigation
  • Court rejects motions to stay
  • Rejection may offer ultimate grounds for appeal
Categories
31 Days to More Effective Compliance Programs

One Month to More Effective Internal Controls – Risk Assessments and Internal Controls

Today, I will review how to use the risk assessment you have performed as a tool to provide a structured approach to establishing effective internal controls. After preparing the risk assessment, the next step is to prioritize listing the risks and which locations are common. This begins by mapping existing internal controls to risks and assessing whether the internal controls are sufficient to mitigate the risks.

To help with consistency in this evaluation process, assigning a risk weight to each element in the risk assessment may be useful. For example, a construction company might assign a higher weight to the presence of movable fixed assets. A company that sells exclusively through local distributors might assign a higher weight to the sales function than one that exclusively uses company employees for sales activities. However, it is structured; the assessment should result in the assignment of individual risk scores and a composite risk score for each location. These scores can then prioritize the locations dealing with control risks.

Top Risks Include:

Sales are conducted through third parties.

·       A U.S.-based international sales manager who is responsible for growing the business?

·       Sales channel uses a U.S.-based sales force that only travels to locations outside the U.S. for temporary visits of generally short duration.

·       Gifts, travel, and entertainment.

· High-risk jurisdictions.

·       Business ventures.

You can also utilize the COSO 2013 Internal Controls Framework, which created a more formal structure to design or assess the effectiveness of internal control within the five COSO components. A companion document, Internal Control over External Financial Reporting: A Compendium of Approaches and Examples, catalogued possible approaches and examples in the context of internal controls over financial reporting and could be useful for companies complying with internal compliance controls under the FCPA. COSO has also published an additional companion document, Illustrative Tools for Assessing Effectiveness of a System of Internal Control, which provides templates that may be used to support an assessment of internal controls and includes various scenarios which illustrate several practical examples of how the templates may be used.

Finally, consider a business unit in a geographic area such as the Far East where there is a significant amount of deference to supervisors in the local culture, such that even if an employee saw inappropriate behavior, it would not be expected that the employee would make any report or comment.

Three key takeaways:

1. Third-party risks are still your highest risks under the FCPA, so use your internal controls appropriately to help prevent this risk from becoming a violation.

2. Use mapping and gap analysis to collate risks to existing controls.

3. Always consider the regional and geographic variances.

Categories
Hill Country Authors

John Moore – The Country Writer

Welcome to the award-winning The Hill Country Authors Podcast. In this podcast, Hill Country resident Tom Fox visits with authors who live and write up the Texas Hill Country. In this episode, I visit with newspaper columnist John Moore. John Moore is a columnist across Texas and is featured in Kerrville Times. In this podcast, John talks with Tom Fox about his upbringing in Ashdown, Arkansas, in the Southwest corner of the state. John shares experiences in East Texas and its ecosystem and explains why the Razorbacks are very important due to the lack of professional sports teams. He covers his work in trading and liquidating antique cars and how his high school English teacher sparked his passion for writing. His most recent column is about television channels and movable antennas.

Key Takeaways:

●      The Ecological, Cultural, and Economic Impact of Oil Drilling in East Texas

●       The Impact of the Arkansas Razorbacks on Sports in the State

●       Reclaiming Childhood Memories with Antique Cars and Tractors

●       Pursuing a Passion for Writing, Encouraged by a Teacher

●       The Work of a Texas Native Newspaper Columnist

Notable Quotes:

“He would buy things, and he would bring them home, and he would fix them up, and he would sell them. And he brought home a black and white television set. And I remember the first thing I saw on that television set was Alfred Hitchcock Presents. And I was hooked. I mean, I was just hooked. I was just fascinated by the stories, the suspense, the mystery, and the horror. And I just loved it.”

“East Texas is unique just as Texas is unique. People have a hard time understanding when they’re not from Texas when you tell them you’re going to say, Del Rio or El Paso, and it’s going to take a couple of days to get there in a car. They have no sense of how big this state of Texas is.”

“And I thought, if it’s in the paper, maybe my dad will think it’s a big deal. So I did it. Then the next thing I knew, I got a letter from a lady who said she and her husband wanted to buy my books. Well, I didn’t have any books. So I thought, well, I’ll write a book. So I wrote a book.”

“People asked me all the time. What’s it like in Texas? And I say, well, it’s no different where I live in Texas. It looks the same as where I grew up in Southwest Arkansas; the people are essentially the same. The morals are the same. People are very much people of faith here, just like they are where I grew up

 Resources

John Moore, The Country Writer

Categories
FCPA Compliance Report

Susan Divers on 2023 LRN Program Effectiveness Report

Welcome to the award-winning FCPA Compliance Report, the longest running podcast in compliance. In this special episode, I am joined by Susan Divers, Director of Thought Leadership at LRN to discuss LRN’s 2023 Program Effectiveness Report.  In this episode, Susan and I discuss making your ethics and compliance program is as effective as possible. We include a consideration of the gulf between high performing and less effective programs as well as the impact of the pandemic on compliance;  the importance of empowering middle managers and involving them more in ethics and compliance. Susan also explains why companies need to upgrade their systems to make them more effective, particularly in the data component.

Key Takeaways:

[00:04:50] The Pandemic’s Effects on Compliance Programs

[00:09:17] Decreased Engagement of Senior Management in Ethics and Compliance Throughout the Pandemic

[00:13:52] The Importance of Upgrading Data Systems for Optimal Compliance

[00:18:26] Proof the Program has Been Successful in Improving Student Achievement.

Act now and use the link below to obtain a copy of the Report at no cost. It’s the perfect way to learn more about ensuring your ethics and compliance program is as effective as it should be.

Resources:

Connect with Tom Fox

Connect with Susan Divers

Download the LRN 2023 Program Effectiveness Report

Categories
Great Women in Compliance

Ellen Smith – Trade Compliance

Welcome to the Great Women in Compliance Podcast, hosted by Mary Shirley and Lisa Fine. Today’s episode on Trade Compliance, with Ellen Smith, is a celebration of male allyship.  Ellen was nominated to be on the Great Women in Compliance podcast by Matt Silverman.  It is always a joy for Lisa and Mary to see men supporting women and leveraging off the #GWIC podcast to achieve this.

Ellen joins Mary and walks us through some Trade Compliance hot topics of the moment and helps us understand what boycotts are and how they fit into the Trade Compliance landscape.  She also shares her journey about how she came to specialize in this subject matter area and tell us about hanging her own shingle in the space.

One other way you can improve your workplace is with employee recognition, and Mary’s “Living Your Best Compliance Life” column at Corporate Compliance Insights can provide some great insights on the benefits of doing so and some ideas that can brighten someone’s day.

The Great Women in Compliance Podcast is on the Compliance Podcast Network with a selection of other Compliance related offerings to listen in to.  If you are enjoying this episode, please rate it on your preferred podcast player to help other likeminded Ethics and Compliance professionals find it.  If you have a moment to leave a review at the same time, Mary and Lisa would be so grateful.  You can also find the GWIC podcast on Corporate Compliance Insights where Lisa and Mary have a landing page with additional information about them and the story of the podcast.  Corporate Compliance Insights is a much-appreciated sponsor and supporter of GWIC, including affiliate organization CCI Press publishing the related book; “Sending the Elevator Back Down, What We’ve Learned from Great Women in Compliance” (CCI Press, 2020).

If you enjoyed the book, the GWIC team would be very grateful if you would consider rating it on Goodreads and Amazon and leaving a short review.  Don’t forget to send the elevator back down by passing on your copy to someone who you think might enjoy reading it when you’re done, or if you can’t bear parting with your copy, consider it as a holiday or appreciation gift for someone in Compliance who deserves a treat.

You can subscribe to the Great Women in Compliance podcast on any podcast player by searching for it and we welcome new subscribers to our podcast.

Join the Great Women in Compliance community on LinkedIn here.

Categories
Compliance Into the Weeds

Activision Blizzard Settlement with SEC

The award winning, 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 and I take a deep dive into the recent Activision Blizzard settlement with the SEC for the company’s failings around internal controls regarding the detection and prevention of sexual harassment and its whistleblower protection laws.

Some of the highlights include:

·      The background facts.

·      The toxic culture which led to the claims.

·      The denials by company officers that anything was wrong or to the validity of the claims.

·      How does this ruling tie into the Delaware court decision on the duty of oversight?

·      Must there be a material risk for the creation of an information system?

·      What about CCO certification?

·      What does it all mean for CCOs going forward?

 Resources

SEC Order

Matt Kelly in Radical Compliance

Categories
Daily Compliance News

February 8, 2023-the Dry at MSG Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Stories we are following in today’s edition of Daily Compliance News:

  • No beers at MSG? (Reuters)
  • Corps want business data protected under EU Data Act. (FT)
  • Singapore may review the non-prosecution of Keppel Offshore. (Bloomberg)
  • Crypto rebrands. (WSJ)