accounting controls Archives - Corruption, Crime & Compliance

Contract to Invoice to Payment (“Tinkers to Evers to Chance”) (Part II of II)

Uncategorized

8 Feb, 2023

Contract to Invoice to Payment (“Tinkers to Evers to Chance”) (Part II of II)

The SEC knows that it has powerful enforcement tools. The FCPA imposes two important requirements on issuers – keep accurate books and records and maintain internal controls to ensure that management’s accounting controls operate effectively to ensure proper use of corporate assets. The SEC knows these are broad requirements. One critical area of focus has been the SEC’s focus on contract-invoice-payment process. For compliance professionals,...

General

7 Feb, 2023

The Importance of Accounting and Internal Controls (Part I of II)

Here are some basic propositions that surround FCPA compliance. It is often underplayed that the FCPA contains more than just a bribery prohibition – the FCPA contains broad provisions, requiring accurate books and records and internal controls. When it comes to bribery, wrongdoers have to find ways to “steal” or gain unauthorized access to money often by circumventing internal controls. Thus, bribery conduct often goes...

General

24 Feb, 2022

Lessons Learned from the KT Corp. SEC FCPA Settlement (Part III of III)

Even though the size of the KT Corp. SEC enforcement action is relatively small, the underlying misconduct provides a number of important lessons learned. Let’s look at some of the most significant lessons learned: C-Suite Misconduct: KT’s slush fund was executed by a High-Level executive at KT Corp. and was funded through inflated bonus payments made to executives. Each executive returned the over-payment to the...

Cardinal Health Pays SEC $8.8 Million for FCPA Violations

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3 Mar, 2020

Cardinal Health Pays SEC $8.8 Million for FCPA Violations

Cardinal Health (“Cardinal”) agreed to pay the SEC $8.8 million for FCPA violations in China relating to its internal controls and books and records. (SEC Order Here). Cardinal acknowledged facts relating to internal controls deficiencies and its handling of marketing accounts that it supervised for its distributors. In particular, while Cardinal mitigated its corruption risks by terminating many of these accounts, Cardinal inaccurately assessed the...