DLA Newsflash logo arial round w/ border
February 6, 2014

Internal Audit

Audit News Update
No More Mr. Nice Guys: SEC Sharpens Talons for 2014

On January 2, 2014, it was reported that in 2013, the SEC brought fewer enforcement actions involving financial fraud and issuer disclosure than any year in the previous decade. Under the Dodd-Frank Whistleblower program, informants who provide the SEC with original information may ultimately receive a percentage of any monetary recoveries as a result of the enforcement action. In October of 2013, the SEC awarded its largest bounty to date, which could drive the number of tips higher in 2014. In July of 2013, the SEC's Enforcement Division announced the formation of the Financial Reporting and Audit Task Force. The task force is comprised of enforcement attorneys and accountants who will work with the Enforcement Division's Office of the Chief Accountant, the SEC's Office of the Chief Accountant, the Division of Corporation Finance and the Division of Economic and Risk Analysis. A weapon the task force will use is known as the Accounting Quality Model (AQM) which will allow them to discern whether a registrant's financial statements stick out from the pack.

To read more on this story, click here.


Whistleblowing - Learn from Directors of the SEC, CFTC and IRS programs

On January 13, 2014, was announced that the ABA will host a panel discussion with directors from three federal whistleblower programs, the SEC, CFTC and IRS. The program will provide an overview of the whistleblower programs and address hypothetical situations faced by whistleblowers and their attorneys. The panelists will address confidentiality of disclosures and the anti-retaliation protections available to whistleblowers and discuss the monetary awards available to eligible whistleblowers.

To read more on this panel, click here.

FAF to Pay Up to $3 Million to Help IASB's Convergence Work

On January 28, 2014, it was announced that the IFRS Foundation will receive assistance from the Financial Accounting Foundation (FAF) with work on international convergence projects. The FAF announced that it will make a nonrecurring contribution of up to $3 million in 2014 to the IFRS Foundation to support the work by the International Accounting Standards Board (IASB) on the four join projects it is completing with FASB. The joint projects will attempt to achieve converged financial reporting standards for revenue recognition, leases, financial instruments, and insurance. FAF will make three payments of $1 million this year in order to support the projects. According to FAF Chairman, Jeff Diermeir, "Completing these joint projects clearly is in the best interests of FASB stakeholders, including all those around the world who invest in U.S. capital markets".

To read more on this story, click here.

Contact Information
David Landau & Associates, LLC