Considering Internal Whistleblower Systems When Evaluating External Risk

Section 301 of SOX requires audit committees of issuers listed on U.S. exchanges to establish procedures for employee complaints regarding accounting, internal controls or auditing matters. Additionally, procedures must be established for the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters. However, do all companies comply with Section 301?

In this article, Audit Analytics outlines the importance of assessing an internal whistleblower system when evaluating the risk for future fines or litigation.