Sign In
Sign In
Is a proposed audit standard on related-party transactions from the Public Company Accounting Oversight Board (PCAOB) mission creep, or just a pointed reminder to auditors to pay attention to the potentially corrupting role of executive compensation arrangements? In putting forward the new standard in February, the board noted studies showing that one-quarter of its disciplinary actions cite auditor failure with respect to related-party issues, including significant unusual transac tions, and that 90% of fraudulent financial reporting cases brought by the Securities and Exchange Commission involve top executives. The proposed standard requires auditors to look for ways pay agreements might lead to excessive risk-taking or actions designed to benefit an executive at the expense of shareholders.
Recommended Stories
Mexico’s Judicial Reforms and the Implications for Foreign Investors
“A considerable level of uncertainty is likely to dominate the Mexican legal landscape for the foreseeable future.”
Lost Pension Plan: A Hot-Button Issue for Striking Workers
Boeing union workers, in their seventh week of a strike, are seeking higher wages along with the restoration of the company’s pension plan, which has been frozen since 2014.
80% of 401(k)s Are Overpaying on Administrative Fees, Facing ERISA Non-compliance
New research findings raise an important question for employers: Are your retirement plans truly supporting your employees, or are they costing them more than they should?
Treasury & Risk
Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!
- Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.
Copyright © 2024 ALM Global, LLC. All Rights Reserved.