October 29, 2004
AICPA Moves Forward on Transparency
It seems there is not a week that goes by that we do not hear about another censure of a major accounting firm. A lot has changed since the PCAOB was established as part of the Sarbanes-Oxley Act. We look forward to more positive moves around this profession.
See the excerpt here:
"New AICPA Chair Bunting Outlines Priorities for Term
Orlando, Fla. (Oct. 28, 2004) - In his inaugural speech at the American Institute of CPAs Fall Council meeting here, incoming chairman Robert L. Bunting detailed his priorities for the coming year and called on his fellow CPAs to not only embrace change, but to initiate it.
Bunting, who recently stepped down as chairman and chief executive of Seattle-based Moss Adams LLP, took over the top volunteer spot at the institute on Tuesday, succeeding S. Scott Voynich.
"Great professions don't just accept change," Bunting said in remarks to Council members. "They don't just embrace change. Great professions initiate change -- for their own good, for the public good and for the sake of the future."
Bunting urged Council members to increase transparency in the institute's peer review process. The AICPA's Professional Ethics Executive Committee proposed granting greater access..." For the complete article, click here.
To effectively and rapidly comply with Sarbanes-Oxley, see www.issuescentral.com to learn more about the Compliance Playbook.
See the excerpt here:
"New AICPA Chair Bunting Outlines Priorities for Term
Orlando, Fla. (Oct. 28, 2004) - In his inaugural speech at the American Institute of CPAs Fall Council meeting here, incoming chairman Robert L. Bunting detailed his priorities for the coming year and called on his fellow CPAs to not only embrace change, but to initiate it.
Bunting, who recently stepped down as chairman and chief executive of Seattle-based Moss Adams LLP, took over the top volunteer spot at the institute on Tuesday, succeeding S. Scott Voynich.
"Great professions don't just accept change," Bunting said in remarks to Council members. "They don't just embrace change. Great professions initiate change -- for their own good, for the public good and for the sake of the future."
Bunting urged Council members to increase transparency in the institute's peer review process. The AICPA's Professional Ethics Executive Committee proposed granting greater access..." For the complete article, click here.
To effectively and rapidly comply with Sarbanes-Oxley, see www.issuescentral.com to learn more about the Compliance Playbook.
October 28, 2004
Sarbanes-Oxley at Work...
A lot of people have expressed doubts about whether having whistle-blower provisions in laws such as Sarbanes-Oxley, would really work. Well, I guess it does. Looks like someone inside Daimler-Chrysler decided to test it out.
See the excerpt of the article:
"WASHINGTON (Reuters) - DaimlerChrysler AG (DCX.N: Quote, Profile, Research) (DCXGn.DE: Quote, Profile, Research) said on Thursday the U.S. Securities and Exchange Commission has opened a probe into the automaker's compliance with the U.S. Foreign Corrupt Practices Act, which includes anti-bribery provisions.
The investigation follows a whistle-blower complaint filed with the U.S. Department of Labor by a former DaimlerChrysler employee, the company said in a filing with the U.S. Securities and Exchange Commission.
DaimlerChrysler also said it is providing information to the SEC on its compliance with the Sarbanes-Oxley corporate reform law, including how the company reports information to its audit committee, as a result of another whistle-blower complaint." For the complete article, click here.
For information on how your company can effectively, rapidly and affordably comply with Sarbanes-Oxley, see www.issuescentral.com or call (416) 977-1496.
See the excerpt of the article:
"WASHINGTON (Reuters) - DaimlerChrysler AG (DCX.N: Quote, Profile, Research) (DCXGn.DE: Quote, Profile, Research) said on Thursday the U.S. Securities and Exchange Commission has opened a probe into the automaker's compliance with the U.S. Foreign Corrupt Practices Act, which includes anti-bribery provisions.
The investigation follows a whistle-blower complaint filed with the U.S. Department of Labor by a former DaimlerChrysler employee, the company said in a filing with the U.S. Securities and Exchange Commission.
DaimlerChrysler also said it is providing information to the SEC on its compliance with the Sarbanes-Oxley corporate reform law, including how the company reports information to its audit committee, as a result of another whistle-blower complaint." For the complete article, click here.
For information on how your company can effectively, rapidly and affordably comply with Sarbanes-Oxley, see www.issuescentral.com or call (416) 977-1496.
October 27, 2004
A Majority of Boards are Confident on their Section 404 Efforts
Section is a topic on every Board's agenda these days, and rightly so. A large number of companies will begin filing their 404 attestions soon. Interesting to see how boards currently feel the legislation is impacting their companies.
See an excerpt from an article:
"But even with Section 404 looming, confidence is increasing-82% of directors believe their company is prepared to implement Section 404 on internal control reporting. However, only 50% of directors surveyed think Section 404 internal control reporting requirements will make a difference in the quality of their company's financial statements; and less than half (44%) think Section 302 certification of financial statements by the CEO and CFO will make a difference. - Despite the movement by institutional investors and shareholders to
withhold votes against boards for various reasons, only 21% of
directors surveyed support the recommendation to withhold votes when
the audit committee has approved auditors to perform non-audit
services. Of the boards represented in the survey, 51% have allowed
auditors to perform non-audit services for their company." For the complete article, click here.
See an excerpt from an article:
"But even with Section 404 looming, confidence is increasing-82% of directors believe their company is prepared to implement Section 404 on internal control reporting. However, only 50% of directors surveyed think Section 404 internal control reporting requirements will make a difference in the quality of their company's financial statements; and less than half (44%) think Section 302 certification of financial statements by the CEO and CFO will make a difference. - Despite the movement by institutional investors and shareholders to
withhold votes against boards for various reasons, only 21% of
directors surveyed support the recommendation to withhold votes when
the audit committee has approved auditors to perform non-audit
services. Of the boards represented in the survey, 51% have allowed
auditors to perform non-audit services for their company." For the complete article, click here.
Quiet Period for IPO's Under Review by SEC
For seventy years, rules around the quiet period have been in place. There is a move afoot to make this rather onerous restriction a little easier to cope with. This is a good idea since there are so many accidental violations. And information travels a much different pace and via different methods than it did in the 1930's.
An excerpt on this topic is here:
SEC proposes changes to 'quiet period'
Under plan, investors could get updates before IPOs; agency OKs rules for hedge funds.
By Marcy Gordon, Associated Press, October 27, 2004
WASHINGTON -- Federal regulators proposed Tuesday to loosen restrictions on executives' comments in the weeks before their company goes public in a stock sale, a move that could bring the first significant changes in 70 years to a traditional fixture known as the quiet period. For the complete article, click here.
To learn more about how your company can rapidly and affordably manage the Sarbanes-Oxley Act, see www.issuescentral.com or call to find out how the Compliance Playbook can reduce work and increase results - (416) 977-1496
An excerpt on this topic is here:
SEC proposes changes to 'quiet period'
Under plan, investors could get updates before IPOs; agency OKs rules for hedge funds.
By Marcy Gordon, Associated Press, October 27, 2004
WASHINGTON -- Federal regulators proposed Tuesday to loosen restrictions on executives' comments in the weeks before their company goes public in a stock sale, a move that could bring the first significant changes in 70 years to a traditional fixture known as the quiet period. For the complete article, click here.
To learn more about how your company can rapidly and affordably manage the Sarbanes-Oxley Act, see www.issuescentral.com or call to find out how the Compliance Playbook can reduce work and increase results - (416) 977-1496
October 25, 2004
A Departure to the US Elections
As the most powerful nation on earth, every country on the globe is interested in our elections. It is an odd state of affairs that so many of the world's citizens are affected by US politics, but only Americans are allowed to vote. In a way, is the democratic process in need of an update? Are countries quickly becoming archaic? I think so. With communications and travel making the world an ever smaller place, we affect each other more than ever before.
Since we do have to deal with this "country" thing, maybe a starting point is for each world citizen to begin to see the values that we hold in common around the world. Maybe we need to concentrate more on what is the same rather than different. This might be a step towards unity and peace that most countries trully want.
Is the UN the answer to unity? Maybe yes. Maybe no. But certainly the average citizen has the power to exert real change by focusing on sameness rather that how we are all different.
Since we do have to deal with this "country" thing, maybe a starting point is for each world citizen to begin to see the values that we hold in common around the world. Maybe we need to concentrate more on what is the same rather than different. This might be a step towards unity and peace that most countries trully want.
Is the UN the answer to unity? Maybe yes. Maybe no. But certainly the average citizen has the power to exert real change by focusing on sameness rather that how we are all different.
October 21, 2004
Giuliani Wants Business Leaders to Answer to their Constituents
True enough, today's CEO's and CFO's are leaders in society. They probably do not see themselves that way though. They are hired by a board and answer to a board. They answer to various regulators, but the public as a constituent audience probably is not in the forefront of many business leaders' minds.
They are under ever growing pressure to produce the expected results. This can lead to compromises that the public will not understand. Because businesses have so much impact on the daily lives of everyone, business leaders need to take the view that they do have responsibilities beyond the boardroom. In order to do this, though, boards, shareholders and analysts must change their viewpoints.
Because at the end of the day, "you get the behavior you compensate for". CFO's and CEO's are answering to their many bosses. Their bosses need take a different view as well.
A timely article highlights this point:
"Mr [Rudolph] Giuliani, speaking at the Leaders in London conference, said: "Lots of the problems we have seen in the private sector would not have happened if company leaders thought of themselves as politicians in the best sense.
"Corporate leaders need to recognise a constituency responsibility - to stockholders and to the community."
Mr Giuliani identified America's Sarbanes-Oxley Act as prompting such a shift. Among other measures, the legislation calls for chief executives and finance chiefs to sign off accounts personally" Click here for the complete article.
To learn how your company can both comply effectively and affordably with Sarbanes-Oxley and receive other operational benefits as well, see www.issuescentral.com for information on Issues Central Sarbanes-Oxley Compliance Playbook(tm).
They are under ever growing pressure to produce the expected results. This can lead to compromises that the public will not understand. Because businesses have so much impact on the daily lives of everyone, business leaders need to take the view that they do have responsibilities beyond the boardroom. In order to do this, though, boards, shareholders and analysts must change their viewpoints.
Because at the end of the day, "you get the behavior you compensate for". CFO's and CEO's are answering to their many bosses. Their bosses need take a different view as well.
A timely article highlights this point:
"Mr [Rudolph] Giuliani, speaking at the Leaders in London conference, said: "Lots of the problems we have seen in the private sector would not have happened if company leaders thought of themselves as politicians in the best sense.
"Corporate leaders need to recognise a constituency responsibility - to stockholders and to the community."
Mr Giuliani identified America's Sarbanes-Oxley Act as prompting such a shift. Among other measures, the legislation calls for chief executives and finance chiefs to sign off accounts personally" Click here for the complete article.
To learn how your company can both comply effectively and affordably with Sarbanes-Oxley and receive other operational benefits as well, see www.issuescentral.com for information on Issues Central Sarbanes-Oxley Compliance Playbook(tm).
October 20, 2004
Oh Oh! More Disclosure Issues around Pensions
Are Ford and GM's earnings real or not? This is disappointing when you are depending on large companies to determine where the economy is going, much less if you are actually a shareholder. Pensions are going to the next big problem. They are huge and disclosure issues are rampant. Wow, there are a lot of rocks to turn over before full disclosure happens.
For an excerpt of an article, see here:
"It must be hard being a gigantic, globe-spanning corporation like General Motors or Ford. You've got hundreds of thousands of employees all over the world, revenues that fluctuate by billions from one day to the next, and yet Wall Street analysts want you to turn in dependable profits quarter after quarter. Luckily, however, you have an ace in the hole - a storehouse of value worth billions of dollars, which you can use to help smooth out those rough spots. It's called your pension plan." For the complete article click here.
For rapid and effective tools to manage your Sarbanes-Oxley project, see www.issuescentral.com for more on Issues Central Sarbanes-Oxley Compliance Playbook(tm) or call (416) 977-1496.
For an excerpt of an article, see here:
"It must be hard being a gigantic, globe-spanning corporation like General Motors or Ford. You've got hundreds of thousands of employees all over the world, revenues that fluctuate by billions from one day to the next, and yet Wall Street analysts want you to turn in dependable profits quarter after quarter. Luckily, however, you have an ace in the hole - a storehouse of value worth billions of dollars, which you can use to help smooth out those rough spots. It's called your pension plan." For the complete article click here.
For rapid and effective tools to manage your Sarbanes-Oxley project, see www.issuescentral.com for more on Issues Central Sarbanes-Oxley Compliance Playbook(tm) or call (416) 977-1496.
October 19, 2004
Some Companies Want Governance to "Go Away"
In this world of one corporate scandal after another, it is amazing that companies think that the old rules apply. The public is not impressed with companies who do not embrace transparency and disclosure. It appears that those companies have secrets and they might be committing fraud. Go there first and lead. it IS a competitive advantage.
See this article on the topic:
"Companies failing to embrace corporate governance reforms12.32 pm 19 Oct 04
Some companies have failed to embrace the spirit of the revised code on corporate governance and simply "wish it will go away", according to the creator of the reforms.
Making a rare public comment on the issue, Derek Higgs told a conference in the Netherlands yesterday that a minority of companies were "going through the motions".
In comments reported by the Financial Times, he added: "That is cynical and disappointing, but true." He did not name specific companies.
Higgs was commissioned by the Government to review the role of non-executive directors. His recommendations, incorporated into the revised governance Code, apply to reporting years beginning after 1 November 2003.
Some business lobby groups have criticised the new Code for creating a 'box-ticking' mentality among directors and shareholders that has resulted in an unproductive focus on compliance, at the expense of business performance." Click here for the complete article.
For rapid and affordable Sarbanes-Oxley Compliance, see www.issuescentral.com for more information on Issues Central Sarbanes-Oxley Compliance Playbook(tm) or call today (416)977-1496.
See this article on the topic:
"Companies failing to embrace corporate governance reforms12.32 pm 19 Oct 04
Some companies have failed to embrace the spirit of the revised code on corporate governance and simply "wish it will go away", according to the creator of the reforms.
Making a rare public comment on the issue, Derek Higgs told a conference in the Netherlands yesterday that a minority of companies were "going through the motions".
In comments reported by the Financial Times, he added: "That is cynical and disappointing, but true." He did not name specific companies.
Higgs was commissioned by the Government to review the role of non-executive directors. His recommendations, incorporated into the revised governance Code, apply to reporting years beginning after 1 November 2003.
Some business lobby groups have criticised the new Code for creating a 'box-ticking' mentality among directors and shareholders that has resulted in an unproductive focus on compliance, at the expense of business performance." Click here for the complete article.
For rapid and affordable Sarbanes-Oxley Compliance, see www.issuescentral.com for more information on Issues Central Sarbanes-Oxley Compliance Playbook(tm) or call today (416)977-1496.
October 18, 2004
Even Marketing and Sales Functions are Affected by Sarbanes-Oxley
If revenue recognition is the number one violation in the SEC's Section 704 study, which it is, then it makes sense that the marketing and sales functions are deeply included in the internal controls review in any company. This function which has been more art than science, is now under the bright lights of internal control review.
See this excerpt to read more about the larger net Sarbanes-Oxley casts everyday:
"Deploying a CRM system that supports Sarbanes-Oxley compliance initiatives. Sarbanes-Oxley spans beyond financial business processes and will have an important, lasting effect on all customer-related processes, making the need for an integrated CRM system even more crucial. Because much of what transpires in the marketing and sales organization directly affects a company's financial picture, a tight link between CRM and financial systems is critical and will let managers automate process controls, monitor performance and ensure the development of an audit trail." Click here for the complete article.
To see how Issues Central Sarbanes-Oxley Compliance Playbook(tm) can aid your company in managing its Sarbanes-Oxley project rapidly and effectively, see www.issuescentral.com or call (416) 97-1496.
See this excerpt to read more about the larger net Sarbanes-Oxley casts everyday:
"Deploying a CRM system that supports Sarbanes-Oxley compliance initiatives. Sarbanes-Oxley spans beyond financial business processes and will have an important, lasting effect on all customer-related processes, making the need for an integrated CRM system even more crucial. Because much of what transpires in the marketing and sales organization directly affects a company's financial picture, a tight link between CRM and financial systems is critical and will let managers automate process controls, monitor performance and ensure the development of an audit trail." Click here for the complete article.
To see how Issues Central Sarbanes-Oxley Compliance Playbook(tm) can aid your company in managing its Sarbanes-Oxley project rapidly and effectively, see www.issuescentral.com or call (416) 97-1496.
October 15, 2004
US Again Tops List in Worldwide Competitiveness
To hear top executives in the US talk, you would think that Sarbanes-Oxley was the end of it all. However, this study, just released by World Economic Forum in it's global competitiveness report, shows the US in the top spot or second in the two areas of competitiveness worldwide. Some of this is business and policy climate and also just plain innovation, the way the US has led in this economy for awhile. This study shows that you can be competitive AND have good governance. In fact, maybe they go hand in hand because their is a fragile investor faith and trust issue which works along side good governance.
An excerpt from this study is here:
"In the growth competitiveness index, Finland, the United States and Sweden maintained the top three spots from 2003, while Denmark and Norway were five and six, respectively. (Taiwan was fourth.)
In the business competitiveness index, the United States held the No. 1 position, followed by Finland, Germany, Sweden, Switzerland and Britain. Canada was overtaken by Japan - which leapt to 8th place from 13th - Hong Kong and Belgium.
The growth index is based on the quality of public institutions and macroeconomic performance, while the business ranking compares company operations and strategy, and a country's investment climate." For the complete article, click here.
To find out how your company can benefit from strong compliance, see www.issuescentral.com to learn more about Issues Central Sarbanes-Oxley Compliance Playbook(tm).
An excerpt from this study is here:
"In the growth competitiveness index, Finland, the United States and Sweden maintained the top three spots from 2003, while Denmark and Norway were five and six, respectively. (Taiwan was fourth.)
In the business competitiveness index, the United States held the No. 1 position, followed by Finland, Germany, Sweden, Switzerland and Britain. Canada was overtaken by Japan - which leapt to 8th place from 13th - Hong Kong and Belgium.
The growth index is based on the quality of public institutions and macroeconomic performance, while the business ranking compares company operations and strategy, and a country's investment climate." For the complete article, click here.
To find out how your company can benefit from strong compliance, see www.issuescentral.com to learn more about Issues Central Sarbanes-Oxley Compliance Playbook(tm).
Leadership in Corporate Governance Moving Forward on the Bush Watch
Bush is pulling into the home stretch gaining after the debates are over. We all know he is not going to win as a debater, but his leadership is strong. His administration is charged as soft on corporations, but I wonder what CFO's and CEO's think about that with the first Sarbanes-Oxley filing deadlines arriving just post-election. This is the administration that called a halt to the abusive companies such as Enron,Tyco etc. Their leadership in this area continues to set the bar high for US markets. As well, we should set the bar high as Americans. We are the leaders and have to act like it. The rest of the world is watching.
Excerpt from a Reuters poll:
"WASHINGTON (Reuters) - President Bush opened a four-point lead on Democratic Sen. John Kerry the day after the final debate between the White House rivals, according to a Reuters/Zogby poll released on Friday.
Bush led Kerry 48-44 percent in the latest three-day tracking poll, which included one night of polling done after Wednesday's debate in Tempe, Arizona. Bush led Kerry, a senator from Massachusetts, by only one point, 46-45 percent, the previous day. " For the complete article, click here.
To find out more about how your organization can rapidly and affordably comply with Sarbanes-Oxley with Issues Central Compliance Playbook(tm), see www.issuescentral.com or call (416) 254-9435.
Excerpt from a Reuters poll:
"WASHINGTON (Reuters) - President Bush opened a four-point lead on Democratic Sen. John Kerry the day after the final debate between the White House rivals, according to a Reuters/Zogby poll released on Friday.
Bush led Kerry 48-44 percent in the latest three-day tracking poll, which included one night of polling done after Wednesday's debate in Tempe, Arizona. Bush led Kerry, a senator from Massachusetts, by only one point, 46-45 percent, the previous day. " For the complete article, click here.
To find out more about how your organization can rapidly and affordably comply with Sarbanes-Oxley with Issues Central Compliance Playbook(tm), see www.issuescentral.com or call (416) 254-9435.
October 14, 2004
PCAOB: Not Impressed with SOX Efforts
Uh Oh! Is your company ready with its 404 work? Is it enough? See comments from PCAOB.
"Top accountant says more Sarbanes Oxley work needed By Robert Schroeder
WASHINGTON (CBS.MW) -- American companies must do "vastly more" work to implement the Sarbanes Oxley act, the chairman of the Public Company Accounting Oversight Board said Thursday. "I do not see the private sector in this country dignifying itself by an heroic response to this challenge," PCAOB Chairman William J. McDonough said in a speech. McDonough said members of Congress are still receiving "heavy constituent complaints" about exorbitant executive pay and are busy responding to instances of questionable financial reporting." Click here for article.
To rapidly and effectively comply with Sarbanes-Oxley, see www.issuescentral.com to learn more about Issues Central's Sarbanes-Oxley Compliance Playbook(tm) or call (416)977-1496.
"Top accountant says more Sarbanes Oxley work needed By Robert Schroeder
WASHINGTON (CBS.MW) -- American companies must do "vastly more" work to implement the Sarbanes Oxley act, the chairman of the Public Company Accounting Oversight Board said Thursday. "I do not see the private sector in this country dignifying itself by an heroic response to this challenge," PCAOB Chairman William J. McDonough said in a speech. McDonough said members of Congress are still receiving "heavy constituent complaints" about exorbitant executive pay and are busy responding to instances of questionable financial reporting." Click here for article.
To rapidly and effectively comply with Sarbanes-Oxley, see www.issuescentral.com to learn more about Issues Central's Sarbanes-Oxley Compliance Playbook(tm) or call (416)977-1496.
October 13, 2004
Ranting from Tom Siebel About Sarbanes-Oxley
Certainly Tom Siebel is entitled to his opinion, but what up, Tom? Aren't CEO's supposed to delegate some of these functions to the CFO? Also, does a CEO want to be totally blind on important control issues? Don't these issues contribute to the "Big Picture"? Get with it Tom!
An excerpt on this topic is here:
"We might have killed the goose that lays the golden egg," Siebel told those gathered for an annual cocktail event put on by Silicom Ventures, a sort of private equity matchmaking group. Siebel said the costs associated with Sarbanes-Oxley haven't been calculated yet, as management teams spend increasing amounts of time sweating over issues that affect margins rather than on big-picture business decisions. Perhaps the most damaging impact, he said, is the creation of an increasingly risk-averse business infrastructure. "You're mitigating every possible risk that can be conceived," Siebel said. "Risk didn't use to be a bad thing." As a result, Siebel suggested that the biggest opportunities over the next 10 years are in China and India. "
To see the complete article, click here.
For complete information on how your company can help effectively and affordably meet your Sarbanes-Oxley obligations, see www.issuescentral.com or call (416) 977-1496.
An excerpt on this topic is here:
"We might have killed the goose that lays the golden egg," Siebel told those gathered for an annual cocktail event put on by Silicom Ventures, a sort of private equity matchmaking group. Siebel said the costs associated with Sarbanes-Oxley haven't been calculated yet, as management teams spend increasing amounts of time sweating over issues that affect margins rather than on big-picture business decisions. Perhaps the most damaging impact, he said, is the creation of an increasingly risk-averse business infrastructure. "You're mitigating every possible risk that can be conceived," Siebel said. "Risk didn't use to be a bad thing." As a result, Siebel suggested that the biggest opportunities over the next 10 years are in China and India. "
To see the complete article, click here.
For complete information on how your company can help effectively and affordably meet your Sarbanes-Oxley obligations, see www.issuescentral.com or call (416) 977-1496.
October 11, 2004
Good Governance Now Included in Fund Ratings
Good for Morningstar! Those companies who have good governance are indeed making a concerted effort to be transparent to investors and improve disclosure. Those companies probably have better morale because employees know they work in an environment where honesty rules. At the end of the day, fraud always rises to the surface. Good Job Morningstar for doing the homework for the investors on an important issue.
See this excerpt on this topic:
"Morningstar, best known for its starred ratings of mutual fund financial performance, has assigned governance grades ranging from A (best) to F (worst) for 761 of the largest funds in the US thus far, with plans to grade 2,000 funds in all in the near future. It also has gone a step deeper by assigning ratings ranging from excellent to very poor with accompanying commentary for each fund in five governance areas: regulatory issues, board quality, manager incentives, fees, and corporate culture." For the complete article click here.
For more information on how your company can rapidly, effectively and affordably comply with Sarbanes-Oxley, see www.issuescentral.com or call (416) 977-1496.
See this excerpt on this topic:
"Morningstar, best known for its starred ratings of mutual fund financial performance, has assigned governance grades ranging from A (best) to F (worst) for 761 of the largest funds in the US thus far, with plans to grade 2,000 funds in all in the near future. It also has gone a step deeper by assigning ratings ranging from excellent to very poor with accompanying commentary for each fund in five governance areas: regulatory issues, board quality, manager incentives, fees, and corporate culture." For the complete article click here.
For more information on how your company can rapidly, effectively and affordably comply with Sarbanes-Oxley, see www.issuescentral.com or call (416) 977-1496.
October 08, 2004
Governance Used as a Hammer at News Corp
Who says Governance trends are just non-value added costs to a corporation? Not so, as we have argued vehemently in this blog. We are firm believers that today's international governance trends can and are being used positively to change corporate behavior. The example below with News Corp. (Murdoch Family) is a great lesson in change due to governance rules.
"SYDNEY News Corp. on Thursday agreed to measures that would limit the Murdoch family's control over the media company to win the support of investor groups who had threatened to oppose the company's plan to move to the United States...."This represents a significant movement from News Corp. on the governance issues," Philip Spathis, executive officer of the Australian Council of Superannuation Investors, said. "It's not a perfect result, but it's a victory for a common sense approach to corporate governance. We would give a recommendation to shareholders now in favor of the move."
For the complete article click here.
To find out how your company or organization can effectively and rapidly comply with Sarbanes-Oxley, see www.issuescenttral.com for more information on the Sarbanes-Oxley Compliance Playbook(tm).
"SYDNEY News Corp. on Thursday agreed to measures that would limit the Murdoch family's control over the media company to win the support of investor groups who had threatened to oppose the company's plan to move to the United States...."This represents a significant movement from News Corp. on the governance issues," Philip Spathis, executive officer of the Australian Council of Superannuation Investors, said. "It's not a perfect result, but it's a victory for a common sense approach to corporate governance. We would give a recommendation to shareholders now in favor of the move."
For the complete article click here.
To find out how your company or organization can effectively and rapidly comply with Sarbanes-Oxley, see www.issuescenttral.com for more information on the Sarbanes-Oxley Compliance Playbook(tm).
October 07, 2004
40 Days and Counting Down Until First 404 Filing Deadline
The heat is on. The largest companies will begin filing their Section 404 certifications November 15, 2004 (and after) depending on when their fiscal year ends. Look for a huge number of filings for December 31, 2004. This will let smaller companies know what is going on and if they need to make any changes to their compliance projects.
An excerpt on the looming Section 404 deadline:
"Larger companies will file their SOX-compliant annual reports first. About 40% of corporations end their year Dec. 31. The SEC has extended the deadline to this summer for public companies with a $75 million market cap and foreign-based firms trading on U.S. stock exchanges. For many of these companies, top executives must take a more active role in operational issues under SOX since violations fall squarely on their shoulders (and shackles)."
For the complete article click here.
To see how your company can effectively and rapidly comply with Sarbanes-Oxley, see www.issuescentral.com for more information or call (416) 977-1496.
An excerpt on the looming Section 404 deadline:
"Larger companies will file their SOX-compliant annual reports first. About 40% of corporations end their year Dec. 31. The SEC has extended the deadline to this summer for public companies with a $75 million market cap and foreign-based firms trading on U.S. stock exchanges. For many of these companies, top executives must take a more active role in operational issues under SOX since violations fall squarely on their shoulders (and shackles)."
For the complete article click here.
To see how your company can effectively and rapidly comply with Sarbanes-Oxley, see www.issuescentral.com for more information or call (416) 977-1496.
October 06, 2004
In the Name of Leadership...
In these times, when the values and skills of CEO's are much maligned and questioned, it was great to see a former CEO, Dick Cheney, who really shined in the Vice-Presidential debates. He not only came across as seasoned and knowledgeable, but also as someone who is not just quoting facts but who KNOWS the facts because he has and is lving them.
John Edwards is a nice guy - and I am sure a great trial lawyer. But that is how HE came across as a fact quoting attorney who memorized information and is dispassionately presenting the case. We all get it that attorneys are good speakers, but they generally do not make great leaders. John Kerry and John Edwards are both attorneys, probably good ones.
Let's keep the guys in office who know the ropes and can make decisions. Let's keep the guys in office who have a strategy and not just a desire to BE PRESIDENT. We do not have time in this time in history for a President who gets buried in trivial details rather than being able to focus on the strategy and directions. Witness John Kerry spending weeks deciding on his campaign logo. Come on John, what would you do if you were President? Spend two years deciding on new colors for the White House...
Just a point of view from a former CEO who knows that Bush and Cheney are not perfect, but they have a plan and they have guts. They are leaders and they are the right guys for the time.
John Edwards is a nice guy - and I am sure a great trial lawyer. But that is how HE came across as a fact quoting attorney who memorized information and is dispassionately presenting the case. We all get it that attorneys are good speakers, but they generally do not make great leaders. John Kerry and John Edwards are both attorneys, probably good ones.
Let's keep the guys in office who know the ropes and can make decisions. Let's keep the guys in office who have a strategy and not just a desire to BE PRESIDENT. We do not have time in this time in history for a President who gets buried in trivial details rather than being able to focus on the strategy and directions. Witness John Kerry spending weeks deciding on his campaign logo. Come on John, what would you do if you were President? Spend two years deciding on new colors for the White House...
Just a point of view from a former CEO who knows that Bush and Cheney are not perfect, but they have a plan and they have guts. They are leaders and they are the right guys for the time.
October 05, 2004
Small Business Financing Forum Held by SEC Yields Recommendations
Each year the SEC holds a forum in Washington on Small Business Capital Formation. It is an opportunity for smaller businesses to tell their story directly to the SEC. Some of the formum's recommendations deal with requested delays and review of Section 404 for smaller companies.
It is true that smaller companies feel the burden of the Sarbanes-Oxley even more than larger business due to their smaller staffs and fewer resources to spare. However, one has to continue to ask if a small company would not find it easier to document and test internal controls because they are smaller. Therefore, it is less complex and would take less time. Further, doesn't it make sense to fix your internal control issues when you are smaller so that they do not cost more to fix later when you are larger. Good internal controls just make sense--no matter what size your organization is.
A few key recommendations from the Forum were:
"3. Compliance with 404 should be extended at least two years for non-accelerated filers. During that two year period, SOX 404 should be subject to ongoing monitoring for cost and benefit by the SEC.
5. Recommend that the SEC Commissioners implement a further deferral of 404 implementation for registrants reporting under Regulation S-B until fiscal years ending on or after 12/15/07 to better evaluate the impact of 404, including any further modifications to 404, and to give smaller businesses with smaller resources the opportunity to learn from the experience of companies traded on national exchanges and to allow their consultants to obtain qualified staff. Further, recommend that management be required to report on the progress of 404 implementation during the FY2006 reporting cycle within the registrant's '34 Act filings in a manner similar to the previous Y2K disclosures.
6. That the SEC give higher priority to the needs of small business. "
Click here for the complete article.
To find out how your company can effectively and affordably comply with Sarbanes-Oxley, see www.issuescentral.com or call (416) 977-1496.
It is true that smaller companies feel the burden of the Sarbanes-Oxley even more than larger business due to their smaller staffs and fewer resources to spare. However, one has to continue to ask if a small company would not find it easier to document and test internal controls because they are smaller. Therefore, it is less complex and would take less time. Further, doesn't it make sense to fix your internal control issues when you are smaller so that they do not cost more to fix later when you are larger. Good internal controls just make sense--no matter what size your organization is.
A few key recommendations from the Forum were:
"3. Compliance with 404 should be extended at least two years for non-accelerated filers. During that two year period, SOX 404 should be subject to ongoing monitoring for cost and benefit by the SEC.
5. Recommend that the SEC Commissioners implement a further deferral of 404 implementation for registrants reporting under Regulation S-B until fiscal years ending on or after 12/15/07 to better evaluate the impact of 404, including any further modifications to 404, and to give smaller businesses with smaller resources the opportunity to learn from the experience of companies traded on national exchanges and to allow their consultants to obtain qualified staff. Further, recommend that management be required to report on the progress of 404 implementation during the FY2006 reporting cycle within the registrant's '34 Act filings in a manner similar to the previous Y2K disclosures.
6. That the SEC give higher priority to the needs of small business. "
Click here for the complete article.
To find out how your company can effectively and affordably comply with Sarbanes-Oxley, see www.issuescentral.com or call (416) 977-1496.
October 04, 2004
Companies are Spending Too Much on Sarbanes-Oxley and Missing Opportunities
Everyday, there is another article telling us how onerous and expensive complying with Sarbanes-Oxley is. However, the average company does not begin to have its processes documented much at all. Doesn't it make sense to have a company run with processes and procedures that are written down and deployed for all the employees to see? The average company loses 5-15% in inefficiencies, errors and fraud just because there are not clearly documented procedures on how the business is expected to be run. This is part of complying with Section 404, but doesn't this make business sense as well?
It seems logical that you would want everyone to know how to do their jobs well, and be sure that fraud, errors and inefficiencies are minimized. Companies need to approach Sarbanes-Oxley positively and gain the massive benefits that are to be had and quit focusing on how onerous a task it is when type of work should have been completed long before August 2002.
See an article discussing this pertinent topic:
"Public companies across the country are getting hit with big accounting bills this year. The Securities and Exchange Commission estimates the new standards will cost companies a collective $4 billion or more. And it won't end this year."
See the complete article.
For information on how to comply with Sarbanes-Oxley and not spend millions, see Issues Central Sarbanes-Oxley Compliance Playbook(tm) or call (416) 977-1496.
It seems logical that you would want everyone to know how to do their jobs well, and be sure that fraud, errors and inefficiencies are minimized. Companies need to approach Sarbanes-Oxley positively and gain the massive benefits that are to be had and quit focusing on how onerous a task it is when type of work should have been completed long before August 2002.
See an article discussing this pertinent topic:
"Public companies across the country are getting hit with big accounting bills this year. The Securities and Exchange Commission estimates the new standards will cost companies a collective $4 billion or more. And it won't end this year."
See the complete article.
For information on how to comply with Sarbanes-Oxley and not spend millions, see Issues Central Sarbanes-Oxley Compliance Playbook(tm) or call (416) 977-1496.
October 01, 2004
Maybe Quasi-Private Organizations Need Sarbanes-Oxley
It seems to be that when large corporations' CEO's and CFO's are being vilified, we have quasi-privae organizations such as Fannie Mae (certainly not the only one) who are committing huge frauds, but somehow they do not have to comply with the same sort of regulations on transparency and disclosure that publicly held companies do. Something is wrong...Seems to me that the SOA needs to be expanded to all organizations on which the public places their faith. The organizations that represent the government should be even MORE accountable to the public.
See the excerpt below:
"WASHINGTON — Fannie Mae, the giant mortgage company that has been accused of earnings manipulation by U.S. regulators, now also has become the subject of a criminal investigation by the federal Justice Department.
An accounting crisis is swirling at the company, which is the biggest financer of home mortgages in the United States, and scrutiny of it is widening across the government."
See the complete article
To see how your company can rapidly and effectively implement Sarbanes-Oxley, see information on Issues Central Sarbanes-Oxley Compliance Playbook(tm) www.issuescentral.com or call (416) 977-1496
See the excerpt below:
"WASHINGTON — Fannie Mae, the giant mortgage company that has been accused of earnings manipulation by U.S. regulators, now also has become the subject of a criminal investigation by the federal Justice Department.
An accounting crisis is swirling at the company, which is the biggest financer of home mortgages in the United States, and scrutiny of it is widening across the government."
See the complete article
To see how your company can rapidly and effectively implement Sarbanes-Oxley, see information on Issues Central Sarbanes-Oxley Compliance Playbook(tm) www.issuescentral.com or call (416) 977-1496
