As widely reported on September 29, 2011, the Justice Department has joined the SEC in investigating alleged accounting fraud at Chinese companies listed on U.S. markets. In response, the market punished several Chinese companies listed on the Nasdaq (as much as 23%) which in turn brought the Nasdaq composite down over 1%.

Our webinar How to Perform a Financial Risk Assessment is now available online. Click here to access the webinar directly.

Every compliance audit requires a Segregation of Duties (SOD) analysis. This analysis provides a comprehensive view of which employee positions are performing which finance-related tasks. 

Internal controls are often considered a necessary evil by finance executives and board members. And it's true that with so many strategic issues to address, it can be challenging to carve out the time and attention to ensure that internal controls are in place, designed appropriately, and operating effectively.

In its September 2011 newsletter, global management consulting firm McKinsey & Company published a snapshot article entitled "Why Best Practice Isn't the Best Strategy."

Economic pressures and changes caused by SOX have strained the relationship between CFOs and their companies’ audit committees. One way to break the tension – according to a Korn/Ferry International paper highlighted in CFO magazine – is to invite other high level members of the finance organization to audit committee meetings.  These staffers might include divisional accounting officers, controllers, treasurers, and chief compliance executives.