Tips to the SEC by whistleblowers rose 8% in fiscal year 2013 over the previous fiscal year, according to an SEC report to Congress. The SEC received 3,238 tips in FY 2013, compared with 3,001 tips in FY 2012, the first full year of the program. The SEC’s fiscal year
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TOPICS
Forensic services
SEC’s ramped-up scrutiny means CFOs need to reevaluate processes
CFOs and finance departments may want to undergo a careful evaluation of their financial reporting systems and processes, experts say, now that the SEC is ramping up its scrutiny of accounting and auditing. After years of declining enforcement actions for financial fraud and issuer disclosure, the SEC’s Division of Enforcement
Anti-corruption steps
Regulators in many parts of the globe have increased enforcement of anti-corruption laws. Anti-corruption experts offered the following tips on how companies doing business overseas can step up vigilance to reduce corruption risks. Assess internal and external risks. Enforcement actions by the Department of Justice and the SEC highlight
What’s your fraud IQ?
The word skepticism is derived from the Greek word skeptesthai, meaning “to reflect, look, or view.” It has evolved over the past 2,300 years to represent, among other definitions, the application of reason and critical analysis in the search for a factually supported conclusion. In this context, the concept of
Fraud hotlines: Don’t miss that call
Tip lines are one of the most effective tools organizations possess for detecting and preventing fraud. Fifty-nine percent of forensic and valuation CPAs participating in the AICPA’s 2011 Forensic and Valuation Services Trend Survey said internal whistleblower hotlines would lead to improvements in preventing fraud in the next two to
Identity theft protection process at IRS needs improvements, TIGTA says
Identity theft was the number one type of consumer complaint in 2011, according to the Federal Trade Commission, and some practitioners have asked if tax-related identity theft has become an epidemic. In light of the growing problem, the Treasury Inspector General for Tax Administration (TIGTA) recently audited the IRS’s Taxpayer
Fraud in financial reporting, auditing among targets of new SEC initiatives
Fraudulent financial reporting and auditing are among the targets of three new Division of Enforcement initiatives the SEC announced Tuesday in its efforts to detect and investigate fraud and misconduct that harm investors. The new Financial Reporting and Audit Task Force will be dedicated to detecting fraudulent or improper financial
How not-for-profits can combat fraud
The nature of not-for-profit organizations can make them vulnerable to fraud. Not-for-profits often have religious affiliations, and their missions often are to do good for less fortunate people. This do-good culture can make not-for-profits susceptible to placing a greater trust in their employees than for-profit businesses. “Trust is not an
From CGMA Magazine: Risks remain as companies combat fraud
Fraud poses a serious risk to any business. While progress is evident on some fronts, many organizations still need to improve systems and procedures to prevent, detect, and respond to fraud. Coverage in CGMA Magazine in recent months has highlighted the journey toward better fraud prevention. E-PAYMENT METHODS DECREASE FRAUD
How can theft prevention, reporting, and return filing be improved?
Changing the April 15 due date, moving taxpayer information to the cloud, and allowing personal identification numbers (PINs) for taxpayers who want them were all on the table at a Thursday hearing held by the IRS Oversight Board to explore ways to combat fraud and improve tax administration. The board,
Witnesses tell Senate Finance Committee ways to improve tax system
Witnesses gave the Senate Finance Committee a variety of suggestions on how to fight tax identity theft and fraud, reform the tax system, and fund the IRS during a hearing on Tuesday. The committee heard from witnesses representing the IRS, the Taxpayer Advocate Service, the Social Security Administration (SSA), and
Criminal background checks can’t remain in the background anymore
Among the many client services they perform, accounting firms often handle client funds in the performance of various services provided to both individuals and businesses—bookkeeping, investment advisory, family office, and more. Imagine what might happen if a firm employee steals or otherwise misappropriates funds from a client: The firm would
“Sovereign citizens” promoter faces up to 164 years in prison
A proponent of the “sovereign citizens” movement and self-proclaimed president of the “Republic for the United States” has been convicted of conspiracy to defraud the United States through a series of seminars in which attendees were taught to pay their federal income taxes by filing fictitious bonds (Turner, No. 1:12cr169-MHT
SEC warns investors, advisers of funds custody issues
After identifying numerous issues with custody of investors’ funds, the SEC on Monday issued a risk alert underscoring existing rules. An SEC review of recent examinations of investment advisers where significant deficiencies were detected showed custody-related issues in about one-third of the firms examined, resulting in the alert by the
What are the risks?
Companies with fewer than 100 employees often find it difficult to implement appropriate fraud prevention and detection techniques. The Association of Certified Fraud Examiners (ACFE), in its Report to the Nations on Occupational Fraud and Abuse (2012 issue available here), has consistently reported through the years that small businesses are
What’s your fraud IQ?
Recent scandals at Olympus, Barclays, and Wal-Mart, among others, illustrate the ongoing need for organizations to continually review and strengthen their corporate governance practices. CPAs play a key role in this process. Do you know the best practices for setting up a corporate governance system? Can you spot governance weaknesses
Proving fraud proves difficult for IRS
The Tax Court determined that the IRS was time-barred from assessing tax against the owner of several bankrupt entities for all but the last of several years at issue. Aside from the one year for which the taxpayer consented to extend the limitation period, the assessments were all outside the
Eight principles designed to protect assets of securities firms’ clients
Events that contributed to the global financial crisis have led to careful examination of the way securities firms protect their clients’ assets. To help regulators improve supervision of such firms, the International Organization of Securities Commissions (IOSCO) last week published a consultation report, Recommendations Regarding the Protection of Client Assets.
Stopping tax identity theft: Practical advice for CPAs and clients
Tax return and other tax-related identity theft is a growing problem that CPAs can help their clients with—both in taking preventive actions and in correcting problems after an identity thief has struck. Tax return identity theft occurs when someone uses a taxpayer’s personal information, such as name and Social Security
Anti-Fraud Collaboration launches website
A new website, AntiFraudCollaboration.org, is providing resources to help audit committees, financial executives, internal auditors, and external auditors deter and detect financial reporting fraud. The site is a product of the Anti-Fraud Collaboration, a partnership between the Center for Audit Quality (CAQ), Financial Executives International, The Institute of Internal Auditors,
Features
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How a CPA beat burnout after strokes, depression
Randy Crabtree, CPA, suffered two strokes in four days and struggled with his mental health for years before he learned to recognize, address, and prevent chronic stress. Learn from his insights on how CPAs can avoid professional burnout.
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