What's New Editor's Corner: Corporate governance, big improvement at banks? Tip of the Week Also Noted: Alberto Gonzalez gets 20 years; Accountants embrace cloud computing; and much more...
Today's Top News
Many people will argue that the Sarbanes-Oxley (Sarbox news) has been a success, in particular Section 404 (404(b) news). At large companies, I think you can make a strong case for this. Restatements have fallen and so have compliance costs. Some companies are realizing strategic benefits, but there's always room for improvement. A survey by Ajilon Finance Solutions, which polled 210 accountants, has found that 73 percent of finance professionals "believe their company could be more efficient in the implementation" of Section 404(b). This section, as you know, requires management and external auditors to report on the adequacy of the company's internal control over financial reporting. Specific inefficiencies included: Poor training and education in the area of processes and controls, lack of focus in project management, and utilizing resources and a "compliance at all costs" mentality that focused on effectiveness but not efficiency. Small companies that may someday face a 404(b) mandate would be wise to listen. For more: Related Articles: Read more about: 404(b), Sarbanes Oxley, Restatements, Internal Control
Has Sarbox lead to a chill on information flow?
One goal of Sarbanes-Oxley (Sarbox news) was to ensure that the information disseminated by companies was accurate and that executives were accountable for it. But you often hear Sarbanes-Oxley used as excuse. Executives are so concerned with saying the wrong thing, they tend to clam up. To be sure, there may be cases where executives use the law as an excuse, though Reg FD is just as applicable. Still, the idea of Sarbanes-Oxley and the chilling effect is explored in Finance & Commerce, which takes a look at the advertising industry. Says one executive: "We're oftentimes more limited in what we say because we're part of a publicly traded company (IPO news)." The pages of Advertising Age reflect the times. Reporters "used to page through Advertising Age's agency income issue--back when people still paged through publications--to gauge the size of agencies on an annual basis. However, since 2002, disclosing revenue, number of employees and billings (an increasingly dated measure of an ad campaign's size) have in effect been banned by ad holding companies because of the chilling effects of Sarbanes-Oxley." This is an interesting perspective. What do you think? For more: Related Articles: Read more about: IPO, Sarbanes Oxley, Ad Campaign Small business accounts may lack protection
If you run your own small consulting operation or other business, you've likely been advised or tempted to set up a separate bank account dedicated to your business. But given the risk of online fraud, an article from the Pocono Record suggests you rethink that standard bit of advice. Some business and personal accounts have rules that protect individuals from online hacking but can leave small-business owners unprotected. One Bank of America (NYSE: BAC) customer lost $50,000 to fraudsters and wasn't reimbursed by the bank. Business customers are governed by the Uniform Commercial Code, which essentially allows the bank to lay out the conditions under which clients will--or won't--be reimbursed for a loss. Federal law, however, requires the bank to reimburse hacking losses to personal accounts. The implications of this for the banking industry are huge. Small businesses loom as a huge source of potential business due to higher fees for new services, but to the extent that people are discouraged from signing up for them, they are also frustrated by these new business development ideas. The obvious answer of course is more security for business accounts. For more: Related Articles: Read more about: data security, small businesses, Banking Industry, Bank of America New way to steal from small enterprises and banks
Have you noticed a bunch of signs around your town advertising for people to work from home, where they can make about $500 or so a week. They've been proliferating in some areas and represent, unfortunately, yet another banking scam. We've noted that cyber criminals (hackers news) are stepping up their activity, compromising the bank accounts of small enterprises, especially government institutions and businesses. In a recent scam, noted by The Star-Ledger, the FBI (FBI news) has found that the employers are basically looking for money mules to launder money. They make people think they are working from home in the accounts receivable unit of a large company, or something similar. In reality, they are sending out money in small increments to criminals. They do pay you, however. Usually, a bank account for a small business or government agency is compromised. Money in small sums are sent along to be resent overseas by a mule working from home. Not all mules are innocent of course. Some may have some suspicions about their work but turn a blind eye as long as they are getting paid. For more: Related Articles: Read more about: small businesses, money mules, Cyber Criminals, Bank Accounts Tip of the WeekCan a book kick start your GRC marketing efforts?
If you've dealt with veteran trade reporters, you know they can be a prickly bunch. But you need them to write about your company and your solution (PR news). Frankly, you need them more than they need you because they've got a lot of options when it comes to cranking out articles. So you really need to stand out in a way that doesn't cause them to roll their eyes. A commentary at ZDNet suggests one approach: Have your executive write a good book. The key term here is "good." Writing about a book produced by CA executives, the commentator noted, "I was expecting this thing to be really light and full of infomercial material. You know what? It was pretty good and was only 1 percent self-promoting. If you didn't understand governance (corporate governance news) well, you ought to get this. Each chapter was written by a different CA executive and covers a separate topic." Heck, I'd even like a copy. This, in many ways, is a time-worn approach but it can work, as long as the content is compelling--which usually means non-promotional. In a crowded field, where good information comes at a premium. It may be worth a shot. For more: Related Articles: Read more about: Marketing Opportunity, marketing, GRC Also Noted> Alberto Gonzalez gets 20 years. Article And Finally... What's a degree really worth? Article
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