In the past couple of weeks, the SEC began releasing their first round of climate change-related comment letters to the public. These letters should be used as a template for reviewing current disclosures and assessing whether disclosures should be updated. … Continue reading
Category Archives: Corporate Governance
Importance of Internal Controls for Cybersecurity
The greater use of computer technologies to conduct business increases the risk of cybersecurity incidents and data incidents at public companies. To minimize the possibility of exposures, it is necessary for both corporations and auditors to have an understanding of … Continue reading
Pledged Securities in SPACs Pose Double Risk
Pledging securities, when a beneficial owner pledges their company shares as collateral, poses significant risks to corporate governance and share price. This risk is heightened when securities related to a special purpose acquisition company (SPAC) investment are pledged, due to … Continue reading
Risk of Pledged Securities for Public Companies
Pledged securities – shares of a public company that are pledged by their owner as collateral – present a potentially serious risk to a company’s governance and share price. When a major owner of a company pledges their shares, it exposes the company … Continue reading
Considering Internal Whistleblower Systems When Evaluating External Risk
Whistleblowers can serve as an integral component for identifying and stopping securities fraud. According to PricewaterhouseCooper’s 2016 Global Economic Crime Survey, 33% of suspicious activity was identified by internal reporting from staff and an additional 10% of suspicious activity was … Continue reading
Peer Benchmarking and Trends in Executive Compensation: 2017 Update
Companies use peer groups to gain insight and help set executive pay ranges in comparison to its competitors. Generally, peer groups used for benchmarking are selected to reflect the target company in some way. Peers usually include close competitors or companies of a … Continue reading
2017 Audit Committee Transparency Barometer
The Center for Audit Quality has released its fourth annual Audit Committee Transparency Barometer. The Barometer, compiled and published in partnership with Audit Analytics, provides a year-over-year comparison in key audit committee disclosure areas and assesses the extent of audit committee disclosures … Continue reading