Control Chatter
February 2024
News that Control Professionals need to know
| |
BECOME A RECOGNIZED LEADER | |
The Internal Control Institute™ (ICI) improves organizational Internal Controls worldwide by providing internationally recognized training, products, services, and individual Professional Certifications. The Institute would like to help more organizations and professionals by expanding further into areas where it is not directly represented. For a list of areas already represented see the end of the newsletter. |
MAKE $$$ WHILE YOU CONTRIBUTE TO YOUR PROFESSION
ICI provides world-class programs and its intellectual property to affiliates free of charge and shares all program revenue with them. If your organization is interested in partnering with ICI to earn revenue while you contribute to the development of the internal control profession worldwide don't hesitate to get in touch with Dr. Michael Pregmon, Jr., Chief Operations Officer, by email at:
mpregmon@internalcontrolinstitute.org or by phone at 727-538-4113 in the USA.
| |
|
Test your Knowledge of Internal Control
|
The Internal Control Institute has developed two mini assessments to test your knowledge. A CICS Common Body of Knowledge Mini Assessment that helps an individual determine their knowledge as it relates to organizational governance and control practices. Results point out areas of knowledge that may require additional training and experience. The assessments also provides a measurement to the individual's readiness for CICS certification.
| |
Start becoming an Internal Control professional today! | |
|
The ICI "Certification Series" of online courses |
The ICI "Certification Series" has been completely updated and is available online to everyone around the world! Course content prepares individuals to design and/or assess internal control and to assist management in installing internal control processes. In addition, the series prepares candidates for the Certified Internal Control Specialist (CICS) Examination. To review the course catalog click
ICI Course Catalog
To register for one or all of the online training programs click here:
The Internal Control Institute Store
Online course pricing has been reduced by over 70%
| |
Internal Control Chatter
Each month the staff of The Internal Control Institute reviews hundreds of articles related to Internal Control and Corporate Governance. Here are brief summaries of some of the top articles (along with links to the original article) that may be of interest to you.
| |
|
FCPA enforcement trends for boards and management to
follow in 2024
By John Davis
governance-intelligence.com
FEB 27, 2024
|
In 2024, the US Foreign Corrupt Practices Act (FCPA) and related laws will continue to present potentially significant risks requiring attention by senior management and boards. Here are six key trends to watch.
1. Case numbers are down but enforcement remains a priority
Although the number of announced corporate FCPA dispositions has been lower in the past several years than pre-pandemic levels, the US Department of Justice (DoJ) and the SEC will continue to focus on FCPA enforcement, as indicated by recent speeches and cases.
Read The Article - Trends to watch
| |
|
Self-Disclosure is Now the Key
By Thomas Fox
JDSupra
February 27, 2024
|
The Department of Justice (DOJ) has been making significant strides in emphasizing the importance of voluntary self-disclosure in corporate enforcement cases, particularly in the realm of the Foreign Corrupt Practices Act (FCPA). This shift in approach is evident in recent policy announcements and enforcement actions, beginning with the 2022 ABB Foreign Corrupt Practices Act (FCPA) settlement, to the 2023 Albemarle FCPA resolution and continuing through to the 2024 SAP Foreign Corrupt Practices Action settlement. Through these three resolutions, the DOJ made clear that its most important criteria for evaluating a company for a fine under the FCPA is whether or not it self-discloses.
Read The Article
| |
|
Top 5 SEC Enforcement Developments for January 2024
mofo.com
27 Feb 2024
|
Each month we publish a roundup of the most important SEC enforcement developments for busy in-house lawyers and compliance professionals. This month, we examine:
- The SEC’s approval of spot bitcoin ETPs;
- SEC charges against a $1.7 billion alleged crypto Ponzi scheme;
- A new SPAC rule and SPAC enforcement actions;
- Two SEC “affinity” fraud settlements; and
- An FCPA anti-bribery case with disgorgement of almost $100 million.
Read The Article for details of the top 5
| |
|
The Changing Face of Internal Controls: 5 Trends To Watch in 2024
by Paul Dixon
voquzlabs.com
October 25, 2023
|
It's that time of year again when we peer into the crystal ball and predict what direction the profession will take. And remember this - companies that fail to get on top of the changing face of internal controls may suffer the following:
- Elevated risk exposure to fraud
- Increased wastage of money through errors
- Failures in regulatory compliance
- Reputational damage
So, with that said, let's now delve into the five trends for 2024 that your internal controls team needs to know about.
Read The Article
| |
|
7 Ways Companies’ Cyber-Related Governance Disclosures Will Evolve Post-SEC Rule Change
by Garrett Muzikowski, Matthew Saidel, and Sara Sendek
corpgov.law.harvard.edu
February 20, 2024
|
The increased frequency and severity of cyberattacks has resulted in increased pressure on companies at a global level to prepare for, mitigate against, and disclose the impacts of these attacks. This pressure may be most clearly illustrated by the SEC’s recently adopted rules around incident disclosure. Beyond the SEC, investors have also recognized the increased importance of portfolio companies successfully overseeing and managing cybersecurity risks. Large investors and their stewardship teams, as well as proxy advisors, are rapidly evolving their expectations for Boards and management teams to demonstrate robust cybersecurity programs are in place:
Read The Article
| |
|
Why the DOJ didn’t prosecute a company for bribing a government official
By Cuneyt Akay and Tyler Coombe
bizjournals.com
Nov 2, 2023
|
In a rare case, earlier this year, the U.S. Department of Justice (DOJ) declined to prosecute a company even though it had apparently bribed foreign government officials in violation of the U.S. Foreign Corrupt Practices Act (FCPA). The U.S.-based mining company was alleged to have paid almost $5 million in bribes directly and through third party agents to Egyptian government officials to obtain lucrative contracts to supply coal to an Egyptian state-owned company. These contracts were worth nearly $150 million, and the company earned almost $33 million in profits. Yet, the DOJ declined to prosecute the company. It is an infrequent occurrence but one that is reflective of the DOJ’s current enforcement policy, which gives various forms of relief and, potentially, an avenue to avoid prosecution, if a company that has engaged in improper conduct meets certain criteria. In this case, the DOJ stated its decision to decline prosecution was primarily because the company:
Read The Article to find out the DOJ's reasoning
| |
|
SOX at 20. Time for Tune-Up?
A SOX program that hasn’t been challenged in years can drain resources and impede performance
deloitte.wsj.com
|
In the 20 years since the Sarbanes-Oxley Act of 2002 (SOX) became federal law, much has changed both inside and outside the corporate walls, with significant developments in related technology, methodology, and whole business environments. The SOX program at many companies, however, may not have evolved at the same pace, or at all.
Some SOX programs may have continued to layer on additional controls over the years, while spending the same amount or more to achieve compliance without being able to extract value from the program. Organizations in this scenario could be testing too many controls or may not be focused on the risk areas that matter most. As a result, they may not be attaining reasonable assurance over the operating effectiveness of internal control over financial reporting or may
have larger than necessary cost of compliance. Now may be the right time for CFOs and compliance officers to consider refreshing, rethinking, and modernizing the SOX program.
Read The Article
| |
|
Whistleblower Risks: United States Supreme Court Clarifies Burden of Proof
By Kaitlin Dewberry
JDSupra
February 27, 2024
|
In Murray v. UBS Securities, LLC the United States Supreme Court resolved a circuit split, holding that whistleblowers asserting retaliation claims under Sarbanes-Oxley must prove protected activity was a contributing factor in the unfavorable personnel action. The Supreme Court’s holding rejects the standard previously applied by the Second Circuit that an employee must prove that an employer had retaliatory intent to discriminate against an employee because they engaged in protected activity. Sarbanes-Oxley prohibits retaliation against employees of publicly traded companies who report violations of federal securities laws and regulations. The burden of proof adopted by the Supreme Court is lower and more employee friendly than the one previously applied in the Second Circuit. It means that an employee only needs to show that the protected activity “alone or in combination with other factors tended to affect in any way” the adverse decision.
Read The Article
| |
Below is a list of WorldWide Affiliates currently serving the profession. If your area is not represented please consider partnering with ICI by contacting us today!
| |
ICI World Wide Affiliates
| |
|
Contact: Mr Aminur Rahman
Email: info@aaa-associate.com
Tel: +88 01749 400600
| |
|
Contact: Soulémane BABA DAMAGUI
Email: sbabadamagui@gmail.com
Tel: +0022997492600
| |
|
Contact: Mr Humphrey Chawafambira
Email: humphrey@internalcontrolinstitute.co.bw
Tel: +267 75618647
| |
|
Contact: Mr Eduardo Person Pardini
Email: eduardo@crossoverbrazil.com
Tel: +55 11 2599 8360
| |
|
Contact: Mr Eric Kamegne
Email: eric.kamegne@ipeonline.net
Tel: +237 658 292 978
Our first CICS session in April is online only
| |
|
Contact: Mr Qiu Jianting
Email: cert@neikong.com
Tel: 400-098-1119 or 010 68004176
| |
|
Contact: Mr.Nikolai Triffet
Email: nikolai@icib.org
| |
|
Contact: Mr Summit Goyal
Email: info@bncglobal.in
Tel: +91 9810 575 613
| |
|
Contact: Mr Nereo Guzman Mendoza
Email: nguzman@businesssolutionvalley.com
Tel: +52 811 181 3514
| |
|
Contact: Mr Belal Abdul Jabbar
Email: b.ajabbar@osooltc.com
Tel: +962 6 5927171
| |
|
Contact: Mr Yazid Berrada
Email: yazid.berrada@bcloud.ma
Tel: +212 (0) 522-872-585
| |
|
Contact: Mr Joel Aluko
Email: tunjialuko5@yahoo.com
| |
|
Contact: Mr Muhammad Farooq Hammodi
Email: nardac_k@yahoo.com
| |
|
Contact: Mr Cosmin Serbanescu
Email: contact@incir.ro
Tel: +40 752 525 525
| |
|
Singapore, Malaysia, Indonesia & Taiwan China |
Contact: Mr Bob Seetoh
Email: bobseetoh@theglobalgrc.com
| |
|
Contact: Ms Sedie Jane Masite
Email: sediem52@gmail.com or info@ciagol.com
| |
|
Contact: Ms Nadia Yaich
Email: nadia.yaich@bfc.com.tn
| |
|
Contact: Ms Ilknur Tunc
Email: ilknur.tunc@iciturkey.org
Tel: +90 312 442 50 15
| |
|
Contact: Mr Jesus Salazar Ras
Email: salazarras1970@gmail.com
Tel: +58 426 737 8096 or + 58 416 291 3788
| |
|
Contact: Mr Nguyen Thanh Tung
Email: info@fmit.vn
Tel: 848 3803 5020
| |
|
Contact: Dr Proctor Nyemba
Email: admin@internalcontrolinstitute.co.zw
Tel: +263 4 443124
| |
Control Quote
“Whether you think you can or you think you can’t, you’re right.” – Henry Ford
| |
The Internal Control Institute™ (ICI) is a worldwide organization devoted exclusively to internal control and corporate governance. The Institute is dedicated to the development of world-class educational programs and best practice guidelines on internal control and corporate governance, based on the Sarbanes-Oxley Act and the COSO internal control framework.
| | | | |