Auditors have a wide range of fraud-detection tools available, such as technology including artificial intelligence and traditional risk-management techniques and internal controls. Cybersecurity and internal control over financial reporting are crucial areas where internal and external auditors must ensure that internal controls are effective, said Ralph Summerford of Forensic Strategic Solutions.
Legal and risk experts on a recent conference panel said that organizations need strong incident-response plans and relationships with law enforcement to help them when cyberattacks occur. In addition, the experts encouraged conducting simulated cyberattacks to test response plans and determining whether insurance coverage is adequate.
Indications of a weak corporate culture of ethics and compliance include a passing nod to the "tone at the top" via a corporate video, a plain "vanilla" code of ethics and a chief compliance officer with little access to the C-suite, Michael Volkov writes. Other signs include a low bar for defining "success" in compliance and the lack of an effective system of organizational justice, Volkov writes.
The American Institute of Certified Public Accountants has introduced a new Cybersecurity Risk Program examination through its redefined System and Organization Controls, or SOC, reporting framework. "SOC for Cybersecurity offers a structured approach to implementing security controls which are efficient, measurable, and, most importantly, mitigate risk," says Dan Zangwill, chief security officer of Capital Confirmation.
Starbucks will team with International Rescue and other groups to identify and hire 2,500 refugees to work at its coffee shops in eight European cities over the next five years, the company said Tuesday. The move is part of a larger global plan to provide jobs for 10,000 refugees by 2022.
The Federal Reserve should let a low 10-year Treasury yield and sluggish inflation recover before raising interest rates further, says Robert Kaplan, president of the Federal Reserve Bank of Dallas. "From here now, I'd like to see evidence that recent weakness in inflation in March and to some extent April and May was transitory," he said.