CAQ Snapshot: March 2017
Friday, March 24, 2017
Anti-Fraud Collaboration Report Offers Insights on Addressing Challenges of Complex Accounting
Improved accounting policies and internal controls are key for stemming fraud and reducing the number of financial restatements, according to a new report from the Anti-Fraud Collaboration. The report, Addressing Challenges for Highly Subjective and Complex Accounting Areas, compiles leading-practice recommendations from dozens of company executives, corporate directors, auditors, and regulators who attended two 2016 workshops to discuss ways to help deter fraud and enhance financial reporting.
“The Anti-Fraud Collaboration is pleased to present these recommendations to help companies improve their accounting policies and system of internal controls,” said CAQ Executive Director Cindy Fornelli in a statement. “Investors, our capital markets, and public companies all win when we work together to combat fraud.”
The CAQ is a founding member of the Anti-Fraud Collaboration, along with Financial Executives International, the National Association of Corporate Directors, and The Institute of Internal Auditors. Since 2010, the Collaboration has promoted the deterrence and detection of financial reporting fraud through the development of thought leadership, awareness programs, educational opportunities, and related resources.
“Profession in Focus” Welcomes Rodney Chase, Margaret McGuire
The CAQ has added two new episodes to its “Profession in Focus” video series. The first of these episodes features Rodney Chase, who currently serves on the boards of Tesoro Corporation and Hess Corporation. Chase, who previously chaired the boards of Genel Energy, plc and Computer Sciences Corporation, discusses the keys to handling investigations of fraud or potential fraud, how audit committees should approach the use of non-GAAP measures, and his views on two of the biggest issues facing audit committees in 2017: revenue recognition and the changing nature of international trade. “2017 is going to be a massive year in terms of world trade changes,” he says.
Featured in the subsequent episode is the Securities and Exchange Commission’s Margaret McGuire, Senior Counsel to the Director of Enforcement and Chief of the SEC’s Financial Reporting and Audit (FRAud) Group. McGuire discusses the objectives of the FRAud Group, its extensive use of technology, and how cooperation, self-remediation, and self-reporting are key tenets of the SEC’s enforcement program. “The SEC and our Division will continue to give credit to those issuers that do self-report and that take on their own remediation,” she notes.
In Case You Missed It: A Pair of Podcasts
In the mood to listen rather than watch? Check out these two new podcasts featuring the CAQ. From BDO Global, Noel Clehane, Head of Regulatory & Public Policy Affairs, interviews the CAQ’s Cindy Fornelli, drilling down into topics such as disclosure around auditor oversight, audit quality indicators, and the future of auditing. Fornelli also discusses how new challenges and opportunities in these areas are shaped by technological and political changes.
Key auditing developments are also front and center in this podcast from Accounting Today. Fornelli and AccountingToday.com Editor-in-Chief Michael Cohn cover the CAQ’s 10th anniversary, cybersecurity, and the state of investor confidence in the financial markets.
Commentary: “For These Leaders, No Retreat from Global Connections”
In a March LinkedIn Influencers post, the CAQ’s Fornelli highlights a key point made at the CAQ’s 10th anniversary celebration in January: now is not the time to retreat from thinking globally. “The consensus was rock solid among speakers that the United States and others countries should recommit to connecting and engaging across borders,” she writes.
To illustrate this consensus, Fornelli references Grant Thornton International CEO Edward Nusbaum, who gave a talk at the event on the topic of “connection.” Contrary to recent questions regarding globalization and prospects for multinational businesses, Nusbaum asserted that “the world is still getting smaller.” He cited the interconnected nature of financial markets, the importance of markets abroad for businesses, and the ever-increasing inclination of people to forge global connections through technology.
On the policy front, Fornelli also highlights remarks from CAQ Governing Board Member Mary Schapiro, the 29th Chair of the U.S. Securities and Exchange Commission (SEC) and Harvey Pitt, the SEC’s 26th Chair and the current Chief Executive Officer at Kalorama Partners. Speaking on a panel of current and former regulators, Schapiro and Pitt agreed that the United States should continue its robust participation in global bodies that seek to promote coordination among financial and markets regulators. “It is absolutely essential that U.S. leadership be felt in all these organizations,” said Pitt.
Join the CAQ at These Upcoming Events
National Association of Corporate Directors Southern California Chapter Breakfast
Cindy Fornelli will be visiting the NACD Southern California Chapter for a Fireside Chat on “Policy, Audit, and Risk.” Registration is open to NACD members and non-members.
April 11, 2017; Los Angeles, CA (Website)
Women Corporate Directors Global Institute
The CAQ is pleased to partner with Women Corporate Directors for the 2017 Global Institute, where Cindy Fornelli will moderate a May 11 panel discussion on “The Visionary Board at Work: Developing a Culture of Leadership” with Fatima Al Jaber, Board Member and Head of Projects Committee at the Al Jaber Group; Marina Brogi, Director of Luxottica Group and Salini Impregilo; and Aliza Knox, Vice President of Twitter APAC.
May 10-11, 2017; New York, NY (Website)
California Society of CPAs Accounting Principles and Auditing Standards Committee Meeting
We look forward to seeing our fellow accounting and auditing colleagues at the California Society of CPAs AP&AS Committee Meeting, where Catherine Ide, CAQ Senior Director of Professional Practice, will give a presentation on topics around the auditing profession and an update on the CAQ.
May 18, 2017; San Francisco, CA (Website)
Teachers of Accounting at Two Year Colleges Conference
On May 20, Cindy Fornelli will highlight the Discover Audit initiative at the 2017 TACTYC Conference and moderate a panel discussion on “Inspiring Your Students to Discover a Career in Auditing” with Catherine Banks, Director, Ernst & Young Foundation and Academic Resource Center, Ernst & Young; Robyn Barrett, Chair of Business & Accounting at St. Louis Community College; and Stephanie Tyler, National Director of Campus Recruiting at BDO USA.
May 18-20, 2017; Austin, TX (Website)
National Association of Colleges and Employers Conference
The CAQ is excited to exhibit at the 2017 NACE Conference in Las Vegas! Stop by booth #503 to learn more about the new resources on our DiscoverAudit.org website and why auditing is an exciting and fulfilling career that students should consider.
June 6-9, 2017; Las Vegas, NV (Website)
National Association of Corporate Directors Cyber Summit
The CAQ is pleased to sponsor NACD’s 2017 Cyber Summit, where Cindy Fornelli will participate in a discussion on contextualizing cybersecurity risk. Registration is now open!
June 21, 2017; Chicago, IL (Website)