...Regulatory and Compliance Issues Paper SANYUY D. ELVIS LAW 531 October 13, 2015 JAMES CHARNELL Regulatory and Compliance Issues Paper Do you think that the creation and work of the Public Company Accounting Oversight Board (PCAOB) has resulted in greater independence of auditors of public companies? Due to some major Corporate and Accounting Scandals in some prominent companies including Enron and WorldCom, Sarbanes–Oxley Act (SOX) was enacted in 2002. Through this, a lot of changes were introduced as to the regulation of Financial Practices and Corporate Governance. The SOX later on created the Public Company Accounting Oversight Board (PCAOB). The PCAOB is to oversee the audits of public companies and other issuers so that the interest of the investors can be protected and also further public interests in the preparation of Independent, accurate and informative audit reports. Therefore, all public companies are required to register with PCAOB and also follow its rules. Independence is one of the rules of the PCAOB. As stated in the PCAOB standards Section 101.01, “A member in public practice shall be independent in the performance of professional services as required by standards promulgated by bodies designated by Council”. Furthermore, according to the American Institute of Certified Public Accountants (AICPA), Independence can be defined as a state of mind that permits a member to perform an attest service without being affected by influences that can compromise...
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...Regulatory and Compliance Issues Paper During the late 1990s and early 2000s there were a lot of companies in the USA that were involved with fraudulent activities. These are companies that were trusted by both the public and their investors. Just to mention a few of these companies like Stanford financial, WorldCom, Enron, Tyco and Madoff that intentionally and fraudulently misled their shareholders and the public. The US congress in an effort to curtail the financial scandals, the Sarbanes-Oxley Act was enacted in 2002. The Sarbanes-Oxley (SOX) Act was enacted by the United States congress to protect shareholders and the public from fraudulent accounting practices and errors. The SOX help to regulate, improve standards and also straighten corporate governance. The Sarbanes-Oxley Act facilitated the creation of an oversight company called the Public Company Accounting Oversight Board (PCAOB). “The Public Company Accounting Oversight Board (also known as the PCAOB) is a private-sector, nonprofit corporation created by the Sarbanes-Oxley Act of 2002 to oversee accounting professionals who provide independent audit reports for publicly traded companies” (http://www.sec.gov). Do you think that the creation and work of the Public Company Accounting Oversight Board (PCAOB) has resulted in greater independence of auditors of public companies? As the SOX help the establishment of the PCAOB, the US congress gave the Security and Exchange Commission (SEC) the explicit oversight authority...
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...Riordan Manufacturing Corporate Compliance Plan LAW 531 – Business Law Facilitator: Gregory Schumacher March 30, 2009 University of Phoenix – Online Campus Riordan Manufacturing Corporate Compliance Plan Riordan Manufacturing, Inc. has been an industry leader in the plastics molding industry for nearly 20 years, and its success has been built on a formula of state-of-the-art research and development, strong customer relationships, and innovative, team-oriented employees. The current economic environment, state and federal regulations, and legislative statues present challenges to Riordan that require implementation of strong methods for organizing risk management responsibilities and activities. To achieve business objectives and continued competitive advantages, Riordan must structure risk management responsibilities and activities using a formalized process. The Enterprise Risk Management (ERM) process will ensure identified risks are properly assessed, controlled, and monitored throughout the company to reduce Riordan’s exposure to legal liabilities. This compliance plan outlines the ERM process for Riordan following the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework recommendations on critical aspects of organizational governance, business ethics, internal control, enterprise risk management, fraud, and financial reporting. Enterprise risk management deals with risks and opportunities that affect business value, negatively or positively...
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...2009 Reprints and permission: http://www. sagepub.com/journalsPermissions.nav DOI: 10.1177/0276146709344954 http://jmmk.sagepub.com Abstract The authors provide evidence that firms can enhance their own objectives by internalizing the objectives of most stakeholder groups. This suggests that society’s objectives, as defined by stakeholders to the firm, can be augmented by the self-interest motivation at the heart of a market system. Specifically examined was the impact of stakeholder responsiveness on innovativeness. The second objective of this study was to explore the impact of compliance-based versus strategic-based regulation approaches on firm innovation and overall corporate social responsibility (CSR). Findings suggest that regulatory responsiveness decreases innovation when firms expend resources only on compliance. Firms adopting strategic-based approaches, such as voluntary regulatory...
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...IRAC Brief: JP Morgan Chase Settles the London Whale This is a case study analysis of a current legal case regarding the governance principles of regulatory compliance and the methods used to manage risk arising. The briefing of this case will utilize the IRAC method of case analysis to give a breakdown on the case of JP Morgan Chase on regulatory violations and risk management. The IRAC method will address I - Issue, R - Rule, A - Analysis, and C - Conclusion which will provide a researched assessment of the trading loss violations on this case. Please read and review this analysis of the case utilizing IRAC method of case analysis. Issue JP Morgan Chase permitted traders in its London office to allocate magnified values to transactions and cover up huge losses as they continued to explode. Two traders could face criminal charges for fabricating records to cover up losses. JP Morgan’s charge to the $6 billion oversight in trading loss is the first for a main company since the Securities and Exchange Commission revised its practice of letting firms pay fines without admitting fault. An admission by JPMorgan could provide a pattern for pursuing other admissions in Wall Street cases. The Justice Department is aggressive in getting JPMorgan to admit that from 2005 to 2007, it sold mortgage securities to investors without fully warning of the risks. By wanting the bank to admit some responsibility, officials hope it will caution other corporations to double check before taking...
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...Project: Compliance Auditing | Final DraftAdvanced Auditing | | | | | OUTLINE I. Compliance Audits a. Objective, Scope, and Methodology b. Regulations II. Features & Benefits a. Assessment of overall security b. Exposures that create the greatest risk c. Internal Controls III. The Compliance Audit Process d. Interviews and Reviews e. Preparation f. Procedural Component IV. Conclusion Compliance Auditing Compliance auditing determines whether a process or transaction has or has not followed applicable rules. If rules are violated, the auditor determines the cause and recommends ways to prevent future deviations. The rules being tested can be those created by the organization for itself through corporate by-laws, policies, plans, and procedures; can be those imposed on the organization through external laws and regulations; or can be those external standards that the organization has chosen to follow. In addition Compliance auditors gather evidence regarding fraudulent or abusive activity affecting governmental entities. Their audits are designed to detect and deter the misappropriation of public assets and to reduce future fraud risks. (Associates, 2003) Compliance auditors must have the skills to research issues effectively using authoritative materials, understand how to apply the knowledge gained to the circumstances being tested, and be able to explain to the organization...
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...Aniruddh Parab Mobile: +91 9819299443 / E-mail: aniruddh13481@gmail.com, ani130481@rediffmail.com Middle level positions in HR-Generalist / Payroll Management / Employee Relations with an organization of repute. Professional Synopsis ▪ Having over 10 years of rich experience in Human Resource Management, Payroll and in Human Resources – Operations. ▪ A strong work ethic, with demonstrated commitment to maintaining high professional standards based on accountability, integrity, reliability and responsibility developed by studies. ▪ Flexible and adaptable. Ability to work under pressure to meet specified targets and deadlines by efficiently coordinating a multitude of task at once. ▪ Identifies sound questioning and listening skills to identify staff and requirements and then demonstrates the capacity of going the ‘extra mile’ to meet them. ▪ Creating an environment that sustains and encourages high performance; motivating the teams in optimising contribution levels providing the requisite support for enabling them achieve targets successfully. CAREER FEATURES ORGANIZATION Pioneer Propertyzone India Services Pvt. Ltd Tenure Since June 2012 DESIGNATION Assistant Manager-Human Resources ⇨ Payroll Operation o End to end Payroll operation o Insure proper inputs such as Incentive, DOJ for new joinees etc in to Payroll system o Calculation of Income Tax and other statutory deduction o Preparation as well as payments of E.S.I.C....
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...Abstract There are cross-cutting issues that organizations face regardless of the sector they operate in. It is easy to become so heavily focused on our own individual organizational challenges and strategies, that we do not take advantage of all that can be learned from looking outside the box. This is much the case when it comes to resource management. This paper will analyze the key factors to consider when developing a resource management plan for the public sector, specifically within the realms of community service, in the context of increased consumption of resources with no technological innovation or upgrades. Strategically managing resources, especially in this technology driven era, is a challenge many organizations face. There is a great demand for services (consumption) but less or, in best case scenarios, “flat” amounts of resources to addressing this rising demand. Meanwhile, organizations struggle to keep pace with the latest technological offerings in the market and must determine which of these technologies produces the most meaningful use, or return on its investment. Technological innovation for the sake of acquiring the newest, latest technology should be avoided. (Newell & Turner) But, what happens when increased consumption persists (or demand for resources) but no technological innovation occurs? More importantly, how does an organization in the public sector plan strategically for such a scenario and how can other sectors benefit from this knowledge...
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...BA 3301 Legal Environment of Business Compliance Interview and Report Assignment Associate Professor Lee Usnick, JD I. ASSIGNMENT OVERVIEW Virtually all business activities conducted in the United States are highly regulated, not only by governmental entities, but by professional entities as well. Compliance with all federal, state, and local laws and regulations is a prerequisite to the long term health and survival of a business. Equally important is a business's compliance with standards issued by the professional and accrediting bodies responsible for licensing and certification. Certain industries are more regulated than others. For example, health care, financial services, and public utilities are all highly regulated with extensive licensing and operational standards. When a business fails to comply with all applicable regulations and standards, the business and the individuals who manage it can face a variety of sanctions, from loss of license and program certification, to civil and criminal sanctions that include monetary penalties and prison. In this assignment, you will learn how someone in your selected industry meets the challenges of current compliance requirements. It is not necessary to address all aspects of compliance in this industry or selected company. Rather, you should educate yourself in broad terms about the kinds of governmental and industry standards covering your interviewee's business, then select a few key aspects to explore in depth with...
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...BA 3301 Legal Environment of Business Compliance Interview and Report Assignment Associate Professor Lee Usnick, JD I. ASSIGNMENT OVERVIEW Virtually all business activities conducted in the United States are highly regulated, not only by governmental entities, but by professional entities as well. Compliance with all federal, state, and local laws and regulations is a prerequisite to the long term health and survival of a business. Equally important is a business's compliance with standards issued by the professional and accrediting bodies responsible for licensing and certification. Certain industries are more regulated than others. For example, health care, financial services, and public utilities are all highly regulated with extensive licensing and operational standards. When a business fails to comply with all applicable regulations and standards, the business and the individuals who manage it can face a variety of sanctions, from loss of license and program certification, to civil and criminal sanctions that include monetary penalties and prison. In this assignment, you will learn how someone in your selected industry meets the challenges of current compliance requirements. It is not necessary to address all aspects of compliance in this industry or selected company. Rather, you should educate yourself in broad terms about the kinds of governmental and industry standards covering your interviewee's business, then select a few key aspects to explore in depth with...
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...JJT2 Social Responsibility Western Governors University Social Responsibility Corporate Social Responsibility Business and Society: Stakeholders, Ethics, and Public Policy (Lawrence & Weber, 2011) defines corporate social responsibility (CSR) as the way a company acts that enhances society and its inhabitants and is held accountable for its actions that affect people, their communities and their environment. Many companies now track their CSR score through the use of rating organizations and customer surveys, and publish the results in their annual reports. They recognize their investors and customers want to understand how companies are taking environmentally responsible actions. Sunfun Company Sunfun (name has been changed) is a global provider of renewable energy solutions. It has two distinct lines of business. One is as a manufacturer of solar panels. The other is as an engineering, procurement and construction (EPC) company to build utility scale, ground mounted solar power generating plants. From its website (sunfun.com), its mission statement “is to create enduring value by enabling a world powered by clean, affordable solar electricity.” Its value proposition is to “offer an eco-efficient energy solution that provides more solar electricity, at a lower cost, and with the smallest environment impacts per kWh.” Environmental Considerations and Recommendations As a renewable energy company Sunfun has an obligation and financial incentive to operate in an environmentally...
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...Recognizing and Minimizing Tort and Regulatory Risk Plan A business, whether for or not for profit, in this country, is regulated under guidelines known to us as laws. These laws hold business leaders accountable for conducting business in an ethical manner and protect consumers from negligent practices imposed by a business. An example of these laws is Tort Law, which is a law that provides compensation for tortuous acts to an injured party or party’s property through a civil lawsuit (Cheeseman, 2010). Tort, defined as “a wrong”, is categorized by two components: Negligence Torts and Intentional Torts. The issue of a tort violation is a matter of the plaintiff proving his or her case or the defendant establishing a reasonable doubt that dismantles the plaintiff’s case. By using Alumina, Inc. as a point of reference, this paper will address how regulatory risks are identified and how they can be managed though preventive, detective and corrective measures. It will also concentrate on the torts and risks identified in the simulation and develop a plan that recognizes and minimizes the regulatory risks in this week’s simulation as well as those examined throughout the chapters in this week’s readings. Alumina, Inc., a four billion dollar United States based aluminum maker located along the borders of Lake Dira in Erehwon, is a manufacture of packaging materials, automotive components, bauxite mixing, alumina refining and aluminum smelting. It operates in eight countries...
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...HIPAA Ruling in Tennessee Court Failure to adhere to regulatory compliance can impact a litigation process, which in the case of Stevens vs, Hickman Community Hospital was prominent when the Tennessee Court of Appeals dismissed the case based on failure to comply with Tennessee’s Medical Malpractice Act and the Health Insurance Portability and Accountability Act of 1996. This paper will include an IRAC Brief that will explain the case in detail followed by a brief explanation of governmental principles of regulatory compliance requirements, a brief explanation of methods for managing the legal risks that arise from regulatory compliance issues, and how this case can be applied within a business managerial setting. IRAC Brief Christine Stevens a Tennessee woman filed a malpractice lawsuit against Hickman Community Hospital, the emergency room services and physicians who cared for her husband Mark Stevens, which subsequently resulted in his demise. The case however is being challenged as a result of failing to comply with regulatory requirements set forth in the Tennessee Medical Malpractice Act and the Health Insurance Portability and Accountability Act of 1996. Case In accordance with the Tennessee Medical Malpractice Act, on April 11, 2011, counsel for Mrs. Christine Stevens the spouse of Steven Stevens, formally notified Hickman Community Hospital and Dr. Whitaker of the impending malpractice allegations...
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...Insights on IT risk February 2010 Top privacy issues for 2010 Information serves as an integral part of most business processes. Organizations cannot survive without information and the supporting systems, third parties and manual activities that collect, derive, process, store and make available the information. Organizations rely on information and, therefore, are at risk when the information is degraded. In addition, information often imposes obligations to the organization, whether because a law or regulation requires it, or fiduciary duty demands it. Enterprise governance, risk and compliance (GRC) represents the actions that an organization takes to achieve its performance objectives and manage risk. This includes information risk and the organization’s obligations over the information it owns, produces, uses and makes available to others. Organizations use different kinds of information — financial, business, intellectual property, etc. — each with its own unique governance, risk and compliance considerations. Personal information is one such information category, and in this publication we take a closer look at the specifics of personal information and privacy risk. Insights on IT risk — February 2010 1 Introduction to privacy risk management and compliance This document introduces the related topics of privacy risk management and compliance, describes how they must be addressed integrally to be effectively managed, discusses how effective management...
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... Introduction: The compliance department within the brokerage of firm Mercy Securities Corporation ensures that the firm is operating within all laws, rules and regulations. The department is responsible for monitoring sales to ensure that it complies with FINRA and SEC regulations. Compliance officers have the ability to reduce legal problems and improve public relations. Compliance department is very important in a brokerage firm because it builds the firm's integrity and reputation. Objective: The objective of this report is to explain how the compliance department operates within Mercy Securities Corporation, which controls methods should be in place. The report includes a in detailed look into two forms of control; internal control and management control systems. Conclusion: The compliance department is especially important in a brokerage firm. The compliance department can benefit from implementing internal control and management control systems. There are three types of internal controls - preventative, detective and corrective. The compliance department can be fortified by implementing all three. It is recommended that the compliance department implement management control systems by practicing both personnel and action control. Personnel control builds employees natural tendencies to control or motivate themselves. Action control is a very strict form of management control. It provides more assurance that employees within the compliance department will be loyal...
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