Fraud


Events that contributed to the global financial crisis have led to careful examination of how securities firms protect their clients’ assets.

To help regulators improve supervision of such firms, the International Organization of Securities Commissions (IOSCO) published a consultation report, Recommendations Regarding the Protection of Client Assets.

The report, available at tinyurl.com/bntsbyw, describes eight principles to clarify the roles of regulated securities firms—called “intermediaries” in the report—and regulators in protecting clients’ assets.

Although laws to protect investing clients vary across jurisdictions, the report describes the basic responsibilities of intermediaries and regulators. Intermediaries placing client assets with third parties should reconcile the clients’ accounts and records with those of the third party, while regulators must maintain effective safeguarding of clients’ assets, according to the report.

SPONSORED REPORT

Click-through nexus: Pushing the boundaries of sales tax compliance

Sales and use tax compliance has been complicated by nexus expansion. In this report, we provide an overview of this issue and include a handy state-by-state summary of click-through nexus or notification requirements.

QUIZ

News quiz: Making allowances for the kids and the economy

Recent news gives CPAs insight into Americans’ attitudes about children and money and gauges outlook on the economy. See how much you know about recent news and reports with this quiz.

CHECKLIST

Auditing risks in culture

Cultural flaws can seriously damage an organization. Here’s how internal auditors can reduce risks by embedding culture audits into existing audit programs.