CPAs and Advisors with Your Growth in Mind

FY16 SEC Enforcement Rules Announced

The Securities and Exchange Commission (“SEC”) announced last week the filing of 868 enforcement actions during fiscal year 2016. Actions included companies and their executives engaging in financial reporting misconduct, as well as transgressions by registrants and gatekeepers. The SEC contributes the enhanced use of data and analytics to help detect misconduct and accelerate the investigation process. Fiscal year 2016 showed an increase in actions concerning investment advisers and Foreign Corrupt Practices Act violations. In addition, issuer reporting and disclosure matters continued to be a priority last year. The SEC also held various gatekeepers accountable for failing to comply with. Read More.

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Rule Updated on Whistleblower-Related Legal Costs

In June 2013, Cherry Bekaert notified you of coming changes to whistleblower protection laws for government contractors. Subcontractors were being given protection under whistleblower laws, and the Federal Acquisition Regulation (FAR) was amended at that time to generally not allow legal fees or other expenses related to whistleblower protection claims. This past July, multiple government agencies, the Department of Defense (“DoD”), General Services Administration (“GSA”), and National Aeronautics and Space Administration (“NASA”), finalized a rule to update FAR cost principle 31.205-47, related to the allowability of legal costs. The change implements a section of the National Defense Authorization Act 2013. Read More.

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Whistleblower Receives $300,000 Payment from the SEC

After a public company failed to take action when one of its employees internally reported potential fraud, the Securities and Exchange Commission (“the Commission”; “SEC”) awarded over $300,000 to the whistleblower for notifying the agency of the wrongdoing. Announced on Friday, the Commission said it was notified of the fraud attempt when the employee’s concerns went ignored after 120 days from the initial report. Given authority to pay out awards for securities law violations by the Dodd-Frank Act, the SEC keeps the identity and information of whistleblowers confidential. However, while the whistleblower is an audit and compliance professional, the agency. Read More.

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Free Whistleblower Webinar Coming Next Month

On Tuesday, July 1st at 2:00 p.m. (EST), the Anti-Fraud Collaboration will host the free webinar, “How to Improve Your Whistleblower Program and Address Impediments to Reporting.” Scheduled for 90 minutes, the webinar will feature a panel discussion on useful whistleblower processes and how companies can incorporate the programs into corporate culture. The panelists consist of: Cynthia M. Fornelli, Executive Director of the CAQ; Patricia J. Harnad, President of the Ethics Resource Center; Janie Innis-Thompson, Senior Managing Director and Chief Compliance and Ethics Officer of TIAA-CREF; and Kristin D. Rivera, Partner, Forensic Services of PwC. Other topics of the webinar. Read More.

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