Did Internal Audit Failures Contribute to the Financial and Economic Crisis?

Posted on May 27, 2009

This is a question that should cause every practitioner to step back and think about his or her own practice. There are probably companies where internal auditing should have, but did not, detect weaknesses in board and management governance and risk management processes — resulting in corporate crisis. But, I suspect these situations were few.

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Was Section 404 a Bitter Pill We Should Be Glad We Swallowed?

Posted on May 6, 2009

The UK government’s 2009 budget includes a provision requiring the chief accounting officers for major corporations to certify that they have adequate controls over their tax reporting. The UK press and certain accounting firms have seized on this — with great concern — as the imposition of Sarbanes-Oxley-like requirements on UK companies, with accompanying cost burdens. Now, as I commented in a May 4th article for the FSN online newsletter, it is not clear whether the requirement goes as far as Section 404, or is limited to the reasonable requirements of the Section 302 certification. We will have to wait to get clarification from the UK government.

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