Tag: SOX Compliance

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Compliance Into the Weeds

SOX Compliance, PCAOB Inspections and Audits

The award-winning, Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore a subject more. Join Tom Fox and Matt Kelly in the latest “Compliance into the Weeds” episode as they delve into the world of SOX compliance. Matt shares insights from recent webinars and Cornerstone Research studies on class action lawsuits related to accounting issues in this discussion. At the same time, Tom emphasizes the importance of preventing accounting fraud through robust internal control systems.

They shed light on the role of IT controls in ensuring the integrity and security of financial systems and the challenges auditors face in verifying their effectiveness. They discuss how companies can mitigate the risk of fraud by implementing strong access and cybersecurity controls and adapting to new business environments. Don’t miss out on this captivating episode offering practical tips and strategies for compliance officers and industry professionals!

Key Highlights

·      Current SOX compliance priorities

·      The cost of lawsuits involving SOX compliance failures, financial accounting, and financial restatements are going up

·      2023 PCAOB inspection priorities

 Notable Quotes:

“None of those numbers are going in the right direction for SOX compliance officers.”

“A lot of what SOX compliance is and a lot of what auditors are looking at relates to IT controls.”

“We rely so much on IT now to run the accounting system, the accounts payable, the finance function, a lot of what you need to ensure a strong accounting system is really how are you governing software running those apps.”

“That, however, assumes that you’ve got strong cybersecurity and strong access controls around getting into that portal.”

 Resources

Matt  on LinkedIn

Matt’s three articles on Radical Compliance

a.     SOX Compliance

b.     Lawsuits over SOX failures

c.     PCAOB Inspection Priorities

Tom

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Everything Compliance - Shout Outs and Rants

Everything Compliance – Episode 109, Shout Outs and Rants

Welcome to the only roundtable podcast in compliance as we celebrate our second century of shows. Everything Compliance has been honored by W3 as the top talk show in podcasting. In this episode, we have the quintet of Jay Rosen, Jonathan Armstrong, Jonathan Marks, Tom Fox, and Matt Kelly, with our fan-fav Shout Outs and Rants section.

1. Matt Kelly rants about Zulily and its SOX compliance failures, allowing an employee to embezzle over $300,000.

2. Jonathan Marks shouts out to the NFL for canceling the game between the Bengals and Bills.

3. Tom Fox shouts out to the 50th anniversary of School House Rock and lists his top five.

4. Jonathan Armstrong rants about the mistreatment of Prince Harry’s dog and asks if the dog was traumatized when Prince William knocked his brother (Prince Harry) down and broke the dog’s food bowl.

5. Jay Rosen shouts out to EMS personnel in Cincinnati for training and being prepared when Damar Hamlin went into cardiac arrest during the Bills game and saved his life.

The members of Everything Compliance are:

•       Jay Rosen– Jay is Vice President, Business Development Corporate Monitoring at Affiliated Monitors. Rosen can be reached at JRosen@affiliatedmonitors.com

•       Karen Woody – One of the top academic experts on the SEC. Woody can be reached at kwoody@wlu.edu

•       Matt Kelly – Founder and CEO of Radical Compliance. Kelly can be reached at mkelly@radicalcompliance.com

•       Jonathan Armstrong –our UK colleague, an experienced data privacy/data protection lawyer with Cordery in London. Armstrong can be reached at jonathan.armstrong@corderycompliance.com

•       Jonathan Marks is Partner, Firm Practice Leader – Global Forensic, Compliance & Integrity Services at Baker Tilly. Marks can be reached at jonathan.marks@bakertilly.com

The host and producer, ranter (and sometime panelist) of Everything Compliance is Tom Fox, the Voice of Compliance. He can be reached at tfox@tfoxlaw.com. Everything Compliance is a part of the Compliance Podcast Network.

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Compliance Into the Weeds

SOX Compliance-Slow Poking Along

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 and I go into the weeds on issues raised around SOX compliance by internal audit functions in corporations and the use of tech solutions to improve things by a recent report of the SOX Professional Group.
Some of the highlights include:

  • Why is SOX compliance still ‘a big hassle’?
  • A recent report by the SOX Professional Group found that internal audit is taking over more SOX reporting.
  • Why has internal audit been asked to take over more of this role?
  • Why would the SEC want to reduce award levels at the high end? What is the constituency for this position?
  • The SOX Professional Group report noted that SOX compliance costs are increasing; why did an earlier Protiviti report show costs were ‘drifting downward’?
  • Where are companies on the use of new tech solutions to facilitate SOX Compliance?
  • Why are 73% of all companies still using Excel spreadsheet to report on SOX compliance?
  • What role, if any, does internal audit have in cyber security?
  • Why is cybersecurity not seen as a high risk from SOX reporting perspective?

For additional reading see the following:
Matt’s blog post, Report: SOX Compliance Still a Pain, on Radical Compliance.