PCAOB and SEC Meet with Chinese Regulators Regarding Audits

U.S. and Chinese regulators recently met in Beijing to discuss audit oversight cooperation. Those meetings are of particular interest in view of the questions which have been raised in recent months regarding the financial statements of Chinese issuers whose shares are traded in U.S. markets. Those...

More Woes for Companies with Chinese Connections

SciClone Settles FCPA Follow-on Derivative Suit : In a settlement that involves a company with significant Chinese operations -- and that also may represent something of a template for the settlement of FCPA enforcement follow-on civil lawsuits -- SciClone Pharmaceuticals and the individual defendant...

Why There Aren't Any Investor Lawsuits Yet Over the Olympus Accounting Scandal

For those of you who like me have been watching in disbelief as the accounting scandal engulfing Olympus Corp. has slowly unfolded like a slow-motion train wreck, I am sure you have many questions, but one that occurs to me in particular to ask is - why haven't there been any lawsuits yet? After...

Thinking About the Dewey & LeBeouf Criminal Indictment and Law Firm Management Liability Insurance

The indictment last week of the top officials from the collapsed Dewey & LeBouef law firm is merely the latest development in the long-running sequence of events following the law firm’s demise. The indictment (and the accompanying SEC enforcement action) paints a vivid picture of the desperate...

The SEC’s AgFeed Complaint: No Restatement Means No Sarbanes-Oxley Clawback

The Securities and Exchange Commission says it’s stepping up scrutiny of corporate accounting and disclosure fraud. That means going after gatekeepers like auditors, lawyers, and directors under an aptly named initiative Operation Broken Gate . The AgFeed case is the mother lode for an SEC that...

Rogue CFO - Part I: Introduction

by David Carroll Small, privately owned corporations deal with all types of challenges: competition, government regulations, recessions, rising cost of benefits for employees —the list is long. But one area that seems to be a persistent problem for small businesses is the area of fraud, in particular...

Rogue CFO – Part II: Internal Accounting Controls and Supervision

by David Carroll Our second article in the series, “Rogue CFO,” covers some common sense processes that all too often are missing in smaller businesses – workable controls and verification. Internal controls start with a corporate culture and an attitude – “we pay...