Governance Issues TM
Volume 2018, No. 2
May 30, 2018
In This Issue
  • Something for everyone in this edition as Ron Kral first shares some insights on governing cybersecurity. Public companies are increasingly forming dedicated board committees to tackle cyber risks.
  • Next we turn to ASC 842 to share a tool published by the Center for Audit Quality (CAQ). It helps audit committees exercise their oversight responsibilities on the new lease accounting standard through important questions to consider for successful implementation.
  • Finally, come hear Ron Kral discuss how to integrate a corporate compliance program with the COSO's internal control framework at the IMA's Annual Conference & Expo on June 18, 2018 in Indianapolis, IN.
Many companies rationalize that cybersecurity oversight should reside with their audit committee since there are SEC disclosure ramifications. However, does this make sense considering that cyber risks extend well beyond financial reporting and SEC disclosures?


Cybersecurity Committees are on the rise!
By Ron Kral, CPA, CMA, CGMA
Partner of Kral Ussery LLC
Cybersecurity risks pose grave threats to investors, our capital markets, and our country.  This is the opening sentence of the SEC’s Interpretive Guidance on Public Company Cybersecurity Disclosures dated February 21, 2018. While the SEC’s focus is primarily on effective disclosure controls and procedures for accurate and timely disclosures of cyber risks and material events, the magnitude of this topic has deep operating and compliance ramifications. The big question in boardrooms is who precisely should be responsible for cybersecurity oversight?
A Tool for Audit Committees on ASC 842
The Center for Audit Quality (CAQ) published Preparing for the Leases Accounting Standard: A Tool for Audit Committees to help audit committees exercise their oversight responsibilities for implementing the new lease accounting standard. The tool includes an overview of the standard as well as questions for audit committee members to consider for successful implementation.
Our clients are finding this very helpful as they climb the ASC 842 mountain.
Ron Kral’s Session at IMA's Annual Conference & Expo
Come join Ron Kral at IMA's Annual Conference & Expo on June 18, 2018 in Indianapolis as he offers an approach for integrating a corporate compliance program with the COSO's internal control framework. Attendees will be able to:
  1. Define the minimum requirements for encouraging ethical conduct and demonstrating a commitment to legal compliance. 
  2. Identify and assess risks associated with implementing a compliance and ethics program. 
  3. Recognize COSO’s Internal Control–Integrated Framework and its 17 principles to help ensure an effective compliance and ethics program. 
  4. Understand practical topics from the recently published Fraud Section of the U.S. Department of Justice’s Criminal Division.

Learn more and register for the full conference at https://imaconference.org/ , which runs from June 16-20, 2018. Attending? – let Ron know at RKral@KralUssery.com , as he would enjoy seeing you.
About Governance Issues TM
Governance Issues TM is an electronic newsletter published by Kral Ussery LLC. The newsletter focuses on our practice areas of SEC compliance, internal controls, IT general controls, risk assessments, IPO readiness, M&A transactions, US GAAP compliance and internal auditing.
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