Toy company Mattel announced this week that has completed an independent investigation, led by its audit committee, into the allegations by a whistleblower of accounting improprieties and a lack of independence by the company’s external auditor. The investigation determined that income tax expense was understated by $109 million in the Read More
In a letter to Parliament, the Chartered Institute of Internal Auditors called on the U.K. government for new legislation to reform how the audit industry is regulated in the wake of a series of major corporate collapses. The professional association, which represents internal auditors in the United Kingdom and Ireland, Read More
A new study examines the biggest challenges impacting IT audit professionals as they navigate an evolving risk landscape in an era of digital transformation. The 2019 Global IT Audit Benchmarking Study is the eighth annual audit research project conducted by consulting firm Protiviti and ISACA, a professional association for IT Read More
Boards are significantly overconfident when it comes to addressing the most difficult issues their companies face, party because they are underinformed on top risks, finds a new survey. According to the report, there is a gap between how board members view key risks and how executive management does, due to Read More
When the Securities and Exchange Commission announced last week that it was settling charges against printing and graphics company Quad/Graphics Inc., it cited multiple internal audit and compliance failures as contributing factors in securities law and bribery violations by the company. The Wisconsin-based digital and print marketing provider has agreed Read More
The Securities and Exchange Commission has announced that Herbalife Nutrition—a direct selling company with operations in over 90 countries— has agreed to pay $20 million to settle charges that it made false and misleading statements about its China business model in numerous U.S. regulatory filings over a six-year period. According Read More
A new report finds that companies are making changes to financial disclosures, conducting audit “dry runs,” and even improving and adding new controls ahead of a new regulation that will require audit firms to disclose financial reporting issues that cause concern for auditors, known as “critical audit matters” or CAMs. Read More
The University of Texas School of Law is working to improve its financial oversight and controls after an internal audit found that an ex-facilities employee committed a nearly $1.6 million fraud. Former facilities director Jason Shoumaker was indicted last year on charges of theft, money laundering, and abusing his official Read More
A new academic study is calling into question a rule enacted by the Public Company Accounting Oversight Board that requires audit firms to disclose the name of the lead engagement partner who oversaw the audit. The regulation is known as Rule 3211 and took effect in January 2017. The idea Read More
Former KPMG partner, David Middendorf, was sentenced this week to a year and a day in prison for his role in a fraudulent scheme to acquire a regulator’s confidential plans in an attempt to get a leg up on audit firm inspections. The ex-KPMG exec was also sentenced to three Read More
