Tag: Internal Controls

Is everything an accounting control violation now? | Davis Polk

While the SEC’s expansive view of the internal accounting controls provisions to reach clearly non-accounting conduct has so far centered on stock buybacks, the SEC noted in a footnote in the Charter order that it had always interpreted the provisions to apply to “corporate accountability” more broadly. Companies should be aware that the future enforcement approach might not be limited…

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SEC Charges Royal Bank of Canada with Internal Accounting Controls Violations

The Securities and Exchange Commission today announced that Canada’s largest bank, Royal Bank of Canada, will pay a $6 million penalty to settle charges that it violated the books and records and internal accounting controls provisions of the securities laws relating to its accounting for its costs of internally developed software. The SEC’s order finds that, from 2008 through 2020,…

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SEC Enforcement for Internal Control Failures

On January 29, 2019, the SEC announced four settlements with publicly-traded companies for failure to maintain adequate internal control over financial reporting (ICFR). None of the companies was charged with making false or inaccurate statements, either about its ICFR or otherwise; indeed, each had repeatedly disclosed material weaknesses in ICFR over many years. These cases are interesting for at least…

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SEC Charges Four Public Companies With Longstanding ICFR Failures

The Securities and Exchange Commission today announced settled charges against four public companies for failing to maintain internal control over financial reporting (ICFR) for seven to 10 consecutive annual reporting periods. Two of the charged companies also failed to complete the required evaluation of the effectiveness of ICFR for two consecutive annual reporting periods. via SEC.gov | SEC Charges Four Public…

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SEC Charges Company and Executives for Faulty Evaluations of Internal Controls — SEC Press Release

The Securities and Exchange Commission has settled charges against Texas-based oil company Magnum Hunter Resources Corporation and several individuals, including a company consultant, for deficient evaluation of the company’s internal controls over financial reporting, and failures to maintain internal control over financial reporting between Dec. 31, 2011 and Sept. 30, 2013. via SEC Charges Company and Executives for Faulty Evaluations…

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