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    CASE STUDY 2.1
  • Read the Article: Whitley, J. (2007). PCAOB Proposes Audit Standards. Internal Auditor, 64(1), 15. (this article is located in the EBSCO Host of the University of the Potomac Library)
  • Write a summary analysis and discuss the standards formation. In your opinion are we creating too many standards or are they needed.

Writing Requirements

  • 2-3 pages in length (excluding cover page, abstract, and reference list)
  • APA 6th edition, Use the APA template located in the Student Resource Center to complete the assignment.
  • Please use the Case Study Guide as a reference point for writing your case study.
  • CASE STUDY 3.1
  • Read the Article: (this article is located in the EBSCO Host of the University of the Potomac Library) Mont, J. (2014). The Foundation of Good Compliance & Governance. Compliance Week, 11(131), 46-49.
  • Write a summary analysis and discuss the element of risk and how Boeing sees the future in Compliance.
  • Writing Requirements

    • 2-3 pages in length (excluding cover page, abstract, and reference list)
    • APA 6th edition, Use the APA template located in the Student Resource Center to complete the assignment.
    • Please use the Case Study Guide as a reference point for writing your case study.

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UPDATE event. However, many executives would rather not discuss crisis readiness, he noted. One reason for the lack of concern is that most ofthe companies surveyed recovered from crises quickly and without serious fmancial damage. Seventy-one percent of respondents say crises had a limited impact on their company's profitability, while 6 percent report crises had a major impact. Similarly, 71 percent praise their company's ability to overcome crises — 26 percent rate recovery efforts as "outstanding." Even so, respondents whose companies have overcome a recent crisis are more likely to expect a future crisis and less confident that their organization is prepared, the survey notes. "When it comes to preparedness, they simply do not see as high a level of readiness for many of their company's key business processes," Everson said. Overall, one-third of survey respondents aren't concerned about their company's preparedness for a major crisis. M o r e than 60 percent are confident that key husiness processes such as legal and insurance services, financial management, and accounting and reporting are well-prepared in the event of a major crisis. - T. MCCOLLUM IFAC Issues Code of Conduct Draft E7PHE INTERNATIONAL FEDERATION OF ACCOUNTANTS y (IFAC) has re-released draft guidance to help companies develop and implement a code of conduct. Defining and Developing an Effective Code of Conduct reflects updates made after IFAC's Professional Accountants in Business Committee reviewed comments and suggestions received on Regulatory Notes PCAOB Proposes Audit Standards T HE U.S. PUBLIC COMPANY Accounting Oversight Board (PCAOB) has released a draft standard for auditing internal controls over financial reporting. If approved by the U.S. Securities and Exchange Commission (SEC), An Audit of Internal Control Over Financial Reporting That Is Integrated With an Audit of Financial Statements would replace Auditing Standard No. 2 (AS2), which was approved by the SEC in June 2004. The board is accepting public comments through Feb. 26. The PCAOB proposal follows recent SEC interpretive guidance to help management evaluate internal controls over financial reporting more efficiently. Both measures are intended to help publicly listed companies reduce the costs of compliance with the U.S. SarbanesOxleyAct of 2002. The PCAOB's principlesbased internal control standard focuses the external auditor on the most important matters that can increase the likelihood that companies will discover material weaknesses before they impact financial statements. It also eliminates audit requirements that are unnecessary to achieve the intended benefits, provides direction on how to scale the audit for a smaller and less complex company, and simplifies the text of AS2. In conjunction with the AS2 revision, the PCAOB proposed a rule to revise the standard's independence requirement, which requires external auditors to seek specific pre-approval of any internal controlrelated service from the audit committee. Proposed Rule js^S' Audit Committee Pre-approval of Services Related to Internal Control, is intended to ensure that audit committees receive relevant information to make an informed decision on how the performance of such services may affect their independence. In addition to the new internal control audit standard, the PCAOB issued a draft standard to clarify how and to what extent an independent auditor may use the work of others — such as internal auditors and management — in an integrated audit of financial statements and internal control or in an audit of financial statements only. Information about the proposed audit standards is available from the PCAOB's Web site, www.pcaob.org. - J . WHITLEY SEC Extends Deadlines T HE SEC HAS GIVEN SMALL public companies and new issuers more time to comply with the internal control reporting requirements of Sarbanes-Oxley Section 404. The extension, which was exposed for comment in August 2006, is consistent with the commission's May 2006 proposal, "Next Steps for SarbanesOxley Implementation." Small nonaccelerated filers now must provide a management assessment of the effectiveness ofthe company's internal control over financial reporting starting with fiscal periods ending on or after Dec. 15, 2007. These firms have until their first annual report for the fiscal year ending on or after Dec. 15, 2008, to comply with the Section 4O4(b) requirement to provide an independent auditor's attestation report on internal control over financial reporting in the company's annual reports. The new rules also give newly public companies until their first annual report after becoming an Exchange Act reporting company to comply with Section 404 requirements. These extensions will provide nonaccelerated filers additional time to incorporate the SEC's recently proposed guidance to improve the efficiency ofthe Section 4O4(b) auditor attestation reporting process. The extensions will also help auditors adapt to the PCAOB's proposed replacement standard for AS2. Information about the SEC's extended compliance deadlines can be found at WWW.SeC.gov. - J . WHITLEY FEBRUARY 2007 INTERNAL AUDITOR — [ERM & INTERNAL CONTROLS} SHO P TALK The Foundation of Good Compliance & Governance During our latest roundtable, hosted with Boeing, executives from American Airlines, AT&T, and elsewhere discussed strategies for building an effective structure for compliance to flourish R ig h t: P a n e lis ts a t t h e r e c e n t C o m p lia n c e W e e k /B o e in g f o r u m o n c o rp o ra te g o v e rn a n c e . By Joe M o n t “We all struggle with and debate over where should all these different functions very company is unique, and its sit—compliance, enterprise risk manage­ compliance program must be too if ment, audit, enterprise information gov­ it has any chance of working well, ernance, and corporate governance,” said but there are still some common aspects Judy Carter, vice president for compliance that most high-functioning compliance and audit for BNSF Railway. “There are and governance programs share. so many common goals that run through Compliance and governance can’t just each of these functions. The objective is be wedged into existing functions and to structure your organization so you can reporting lines; integration must be care­ effectively leverage all of these efforts. fully engineered so it effectively meshes Roundtable participants agreed that with business lines and a wide variety of compliance officers tend to wear sev­ departments, from internal audit to HR, eral hats and that it’s not always easy to IT, and finance. At the same time, compli­ move among the many different neces­ ance must have the independence it needs sary roles. Staying on top of everything to surface concerns, play a lead role in in­ can be a challenge and as businesses grow vestigations, and influence culture. or evolve, complications are even more Those dual interests were an underly­ pronounced. ing theme at the latest Compliance Week Eric Hinton, senior director of ethics executive roundtable, co-hosted with and compliance for 7-Eleven, said his goal Boeing Co. in Dallas in November. Com­ is to bring order to “pieces of compliance pliance executives from a wide range of that live in a lot of different places.” “We industries and companies, including Boe­ can improve that by consolidating and ra­ ing, GE Capital, AT&T, Dr Pepper Snaptionalizing it and making it more coherent pie, and American Airlines, shared strat­ across the enterprise,” he said. egies on structuring and organizing the Within the corporation, effective in­ compliance function. They all weighed teraction with other areas is a concern in on what compliance and governance that Doug Cotton, managing director of means to their organizations and how it American Airlines’ business ethics and flows through to various reporting lines. E 46 WWW.COMPLIANCEWEEK.COM >>8 8 8 . 5 1 9 . 9 2 0 0 DECEMBER 2014 compliance program had in common with other roundtable participants. Compli­ ance oversight raises a thorny issue: “How far do we push without having them think we are trying to take over.” Buy-in from executive leadership alone doesn’t necessarily make that effort any easier. “We get really good tone from the top and have really good policies. The struggle is making sure everybody un­ derstands those policies,” Eric Bowman, chief compliance officer for Darling In­ ternational, said. Diana Sands, senior vice president for the Office of Internal Governance at Boe­ ing, described compliance at the aerospace giant as a journey. What originated as a response and enforcement function now has a “vision around enabling company performance.” The important question: “Can we gain a competitive advantage if we do it more effectively and efficiently?” In her role, Sands oversees Boeing’s compliance and ethics program. She is re­ sponsible for ethics, trade controls, com­ pliance risk management, and the team of professionals who comprise internal audit. “In the beginning, it was all about setting up the appropriate structure and rules,” she said. “What we have evolved to is being an integrated business partner, a function that provides centralized and focused expertise in the field and is also integrated with the businesses.” By bring­ ing multiple interests to the same table, the goal is to foster a seamless sharing of information among stakeholders, she said. tions is that they work well with related functions, such as legal, audit, and HR. It is important to understand how various functions operate within their own sphere of influence. “There are just a lot of dif­ ferences in terms of approach,” one par­ ticipant said. “Auditors and accountants are going to want to follow the book and follow COSO to a ‘T.’ Lawyers are more T a lk in g th e W a lk hile proper care and feeding is nec­ essary to get company leadership to W work toward the same goal as the compli­ ance team, tone at the middle may require just as much finesse. “The bigger chal­ lenge is in the middle,” one participant said. The diplomatic task at hand is to not have them thinking that compliance “is questioning their own judgment, ethics, or professionalism.” “You are not really trying to do that, but there is that percep­ tion,” he added. Expectations must be reasonable. “You have to also exercise good judgment,” one participant said. “You can’t turn over ev­ ery pebble on the beach or chase every rabbit.” Success depends upon having credibility throughout the business units and displaying a “willingness to hear what their key risks are, rather than just assuming on your own.” Improving the perception of compli­ ance-avoiding the view that its role is to be a police officer for the organization or, that old cliche, it is the “Department of No,”—was presented as an ongoing battle. What is the best way to create an alternate perception, as a partner and facilitator for the business? “We have to really know the business and help the business units understand the compliance risks; that is where we can help,” Sands said of intra-company out­ reach. “Every dollar spent on remediation is a dollar the business can’t spend on innova­ tion,” agreed William Gordon, associate general counsel for Hercules Offshore. “At the same time, a strong compliance program can improve the quality of the business and deliver a sustained return on investment.” procedurally oriented.” “No matter what, compliance organi­ zations need to work closely with their functional partners,” Sands said. "Inhouse counsel, HR, finance, and other subject matter experts are important team players. In all my groups there are law­ yers and other functions tied in,” she ex­ plained. “To be effective, it’s important to OVERHEARD AT THE ROUNDTABLE "To be effective, it's important to be cross-functionally integrated and well-embedded in the business processes." Diana Sands, Boeing We all struggle with and debate over where should all these different functions sit— compliance, enterprise risk management, audit, enterprise information governance, and corporate governance. There are so many common goals that run through each of these functions. The objective is to structure your organization so you can effectively leverage all of these efforts." Judy Carter, BNSF Railway "Every dollar spent on remediation is a dollar the business can't spend on innovation. At the same time, a strong compliance program can improve the quality of the busi­ ness and deliver a sustained return on investment." William Gordon, Hercules Offshore "We get really good tone from the top and have really good policies. The struggle is making sure everybody understands those policies." Eric Bowman, Darling International "We have a quarterly compliance meeting where we bring lots of people together who don't report up to the CCO. You have HR there and audit, safety, security, cus­ toms, and environmental. We get all sorts of people together who don't normally talk so they can share ideas." Doug Cotton, American Airlines "Our goal is to bring order to pieces of compliance that live in a lot of different places. We can improve that by consolidating and rationalizing it and making it more coherent across the enterprise." U n ify in g F actors Eric Hinton, 7-Eleven nother important aspect of effective compliance and governance func­ A DECEMBER 2014 W W W .COMPLIANCEW EEK.COM» 8 8 8 . 5 1 9 .9 2 0 0 47 — [ERM & INTERNAL CONTROLS} be cross-functionally integrated and wellembedded in the business processes.” The unifying factor, what all ultimate­ ly puts them on the same team, is risk. “One of the synergies taking place in the governance space is the ability for compli­ ance, legal, and internal audit to approach challenges from a consistent risk perspec­ tive,” says Steve Koslow, chief ethics and compliance officer for CUNA Mutual Fund Group. “With greater communica­ tion and a common framework for risk analysis these areas can better coordinate the services they provide. If everybody is looking through the same risk lens, risk prioritization becomes an effective means for allocating limited business area re­ sources.” “We have a quarterly compliance meet­ ing where we bring lots of people together who don’t report up to the CCO,” Cot­ ton said. “You have HR there and audit, safety, security, customs, and environ­ mental. We get all sorts of people together who don’t normally talk so they can share ideas.” “I often find I’m called upon to be the one putting focus to all those lenses,” Bowman said of his role. “I can speak Above: Forum participants discuss their concerns about and strategies for crafting an effective compliance and governance program. legal, I can speak accounting, and I can speak HR.” Optics M a tte r world-class compliance function doesn’t only just function well, it can also demonstrate that effectiveness. Faced with an investigation or government in­ A "If everybody is looking through the same risk lens, risk prioritization becomes an effective means for allocating limited business resources." Steve Koslow, Chief Ethics & Compliance Officer, CUNA Mutual Fund Group quiry, a company cannot just describe its compliance efforts, it must document them. That proof of concept is an effort that extends company-wide. “We may be doing everything right, but we need to demonstrate that we are doing everything right,” it was observed. Ultimately, no matter the structure or who reports where, “The end game for compliance and auditing is exactly the same,” Carter said. “Each function may get there very differently, but they have the same ultimate goal. Risk is never completely eliminated from any business model, but both functions work to reduce risk as much as possible and minimize po­ tential exposure.” ■ P A R T IC IP A N T S These panelists participated in the Nov. 6 Compliance Week & Boeing roundtable on structuring compliance and ethics. 48 Candice Aaron Jennifer Armstrong Susan Bounds Eric Bowman Judy Carter Doug Cotton Chief Compliance Officer, Equipment & Commercial Division, General Electric Enterprise Compliance & Ethics Director, State Farm Insurance Cos. D irector-C orp. Compliance, AT&T Chief Compliance Officer, Darling International VP, Compliance & Audit, BNSF Railway Co. Managing Director, Business Ethics & Compliance Program, American Airlines WWW.COMPLIANCEWEEK.COM » 8 8 8 . 5 1 9 . 9 2 0 0 DECEMBER 2014 Boeing's Diana Sands discussed the evolution to "integrated business partner." Speaking at right: Susan Bounds, director of corporate compliance for AT&T; at left, Candice Aaron, chief compliance officer at GE. At left, William Gordon of Hercules Offshore; CUNA Mutual's Steve Koslow (center); far right is Doug Cotton of American Airlines. Art Swanson, assistant general counsel for Dr Pepper Snapple Group, spoke about the differences in approach. Judy Carter of BNSF Railway is at right. William Gordon Eric Hinton Steve Koslow Diana Sands Associate General Counsel, Hercules Offshore Inc. Art Swanson Sr. Director of Ethics & Compliance, 7-Eleven Chief Ethics & Compliance Officer, CUNA Mutual Graham Vanhegan SVP, Office of Internal Governance, The Boeing Co. VP, Assistant General Counsel, Dr Pepper Snapple Group Deputy General Counsel, Corporate, Chief Compliance Officer, ConocoPhillips DECEMBER 2014 WWW.COMPLIANCEWEEK.COM » 8 8 8 . 519.9200 49 Copyright of Compliance Week is the property of Wilmington Group plc and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.
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Hello,Attached find is the first case study. Have a look at it and let me know how you feel about it. I will be sending the second case study in a short while.
Hello,Attached find is the second attachment. Have a look at it and let me know how you feel about it.Thanks and all the best

Running Head: CASE STUDY

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The main issue being stated by this article or case study is that compliance is one of the
major aspects that can enable an organization to attain its objectives, make a lot of profits, and at
the same time be able to be much competitive than the other companies out here (Bos et al.,
2017). Other than compliance as an important business aspect is usually not being taken very
serious by many employees and the main reason for this is because the e...


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