NEW THIS WEEK

August 30, 2010      

REGULATORY UPDATE

Dodd-Frank Legislation Impact Reaches Beyond Financial Institutions to Affect All U.S. Listed Companies

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Act") is widely considered to be one of the most comprehensive reforms of the U.S. financial industry in decades. Passed earlier this summer, most provisions of the Act relate primarily to banks and the financial regulatory system. While the headlines focus on the financial services industry, public companies in general need to recognize that the new legislation also has a significant impact on corporate governance and executive compensation practices in general. These provisions cut across all industries. This Flash Report is intended to provide a high level overview of certain provisions of the Dodd-Frank Act and its implications for companies.

PUBLICATIONS

Hot Issue

ERP and Control Implementations

Even in a downward economy, most companies continue to go through some type of enterprise resource planning (ERP) systems implementation, including system enhancements and upgrades. Risk and control considerations within enterprise system projects are often an afterthought or even overlooked. Sarbanes-Oxley Section 404 and changes in financial reporting standards, including International Financial Reporting Standards (IFRS), are bringing risk management and internal control considerations to the forefront of any major ERP system change program. This article discusses an endeavor that leveraged implementation methodologies to create a successful ERP “go-live” with control functions.

Questions & Answers

Activity/Process-Level Considerations – The Role of Application and Data-Owner Processes

This section of Protiviti's “Guide to the Sarbanes-Oxley Act: IT Risks and Controls – Frequently Asked Questions" addresses activity and process-level considerations for application and data-owner processes. Topics covered include: Who are the application and data owners? What are the role and responsibilities of the application and data owners in relation to the IT organization? And, what process should the application and data owners have in place to facilitate compliance with Sections 404 and 302?

PROTIVITI PODCAST

Regulatory Intelligence: Leveraging Technology to Maintain Compliance Efficiently and Effectively - Podcast

Regulatory compliance ranks among the top challenges for organizations today. Whether it is Sarbanes-Oxley, corruption or the countless financial regulations that are in the process of being reformed worldwide, companies have seemingly countless laws and requirements they must comply with or face severe penalties. They also face the challenge of doing so without crippling their revenues and profits. In this episode, Protiviti Managing Director Scott Gracyalny talks about the importance of regulatory intelligence and leveraging technology to achieve compliance efficiently and accurately.

TOOLS

Questionnaires

Executive Certifications: Same Responsibilities, Higher Stakes – Questionnaire

Executive management has always been responsible for the quality and fairness of public reporting. However, under The Sarbanes-Oxley Act of 2002, the risks are higher and the consequences of failure more significant. This questionnaire addresses executive certification requirements.

Inventory Management – Internal Control Evaluation Questionnaire

The questionnaire focuses on evaluating internal controls over the inventory process. It discusses topics such as: analytical procedures, purchasing, safeguarding physical inventory, and distribution.

FEATURED LINK

Auditors Can More Easily Dispute PCAOB Findings

A little over a month since the Supreme Court blessed its existence, the Public Company Accounting Oversight Board will continue to face scrutiny, now from those it oversees as well as from its overseer. A new rule from the Securities and Exchange Commission, which watches over the nongovernmental agency, makes it so. Going into effect September 7, the rule explains how accounting firms can dispute the PCAOB's findings during its inspection process. Source: CFO.com

FEATURED KLplus COURSE

Executive Certification: Understanding Section 302 of Sarbanes-Oxley

The completed course is worth 1 CPE credit and by the end of the course the learner will be able to:

• Describe the certification process
• Differentiate disclosure controls and procedures from internal controls
• Identify specific steps company officers should take right now
• Identify what company officers should do over the long term

To view the full list of CPE courses available on KnowledgeLeader, please visit the KLplus page, or to request an upgrade to KLplus, visit the My Account page.

CCH TAX AND ACCOUNTING - ACCOUNTING RESEARCH MANAGER UPDATES

Weekly Summary of Accounting, SEC, and Auditing Developments

• Proxy Rules -- SEC Adopts Changes to Proxy Rules for Shareholder Director Nominations
• Health Care Entities -- FASB Issues Guidance on Measuring Charity Care for Disclosure
• New Accounting Standards -- Checklist Updated
• Health Care Entities -- FASB Issues Proposal on Accounting for Legal Costs Associated with Medical Malpractice
• Other Expenses -- FASB Issues Proposal on Fees Paid to the Federal Government by Pharmaceutical Manufacturers
• Troubled Debt Restructuring -- FASB Discusses Troubled Debt Restructuring
• EITF Materials -- FASB Issues Materials for September 16, 2010 EITF Meeting
• IFRS for SMEs -- IFRS Foundation Appointment and Other Matters Discussed
• IFRS Adoption -- IASB Issues Proposal to Amend IFRS 1
• Stripping Costs -- Draft Interpretation Published on Stripping Costs in the Production Phase of a Surface Mine
• International Accounting -- IASB Publishes Agenda for September 2-3, 2010 IFRS Interpretations
• Committee Meeting
• Government Auditing Standards -- GAO Publishes Exposure Draft of Revised Yellow Book
• Audit Considerations Relating to an Entity Using a Service Organization -- Discussion and Analysis of Statement on Auditing Standards
• Derivative Instruments -- GASB 53 Discussed