Internal Audit & Controls

The Securities and Exchange Commission (SEC) has given the green light to the Public Company Accounting Oversight Board's (PCAOB) budget for the year 2024, along with the corresponding annual accounting support fee. The approved budget, totaling $384.7 million, and the accounting support fee, totaling $358.8 million, underscore the crucial role the PCAOB plays in maintaining the integrity of financial reporting in public companies.

The Public Company Accounting Oversight Board (PCAOB) has issued historic settlements, imposing a total of $7.9 million in fines on three China-based firms and four individuals for violating U.S. securities laws and PCAOB rules and standards. These are the first enforcement settlements since the PCAOB gained access to inspect and investigate firms in mainland China and Hong Kong in 2022.

The United Kingdom's plans for comprehensive audit and corporate governance reforms have encountered a setback, drawing criticism from industry experts and officials. The absence of primary legislation for the proposed reforms raises concerns about the government's ability to respond effectively to future corporate crises, according to a statement released by the Institute of Chartered Accountants in England and Wales (ICAEW).

The Securities and Exchange Commission (SEC) has reached a settlement with Charter Communications Inc., imposing a $25 million penalty on the telecommunications giant. The settlement arises from charges related to violations of internal accounting controls requirements, particularly in connection with unauthorized stock buybacks.

The Securities and Exchange Commission (SEC) has announced that Royal Bank of Canada, the country's largest bank, will pay a $6 million penalty to settle charges of violating books and records and internal accounting controls provisions of securities laws related to its accounting for internally developed software costs.

The Public Company Accounting Oversight Board (PCAOB) has announced a disciplinary order against Smythe LLP, a prominent accounting firm, for multiple violations of PCAOB rules and quality control standards. The sanctions come in response to Smythe's improper utilization of unregistered firms in connection with four audits, a practice that raised concerns about investor protection and regulatory compliance.

The Financial Reporting Council (FRC) is taking steps to reinforce auditor reporting standards concerning the detection and disclosure of material misstatements resulting from non-compliance with laws and regulations. The initiative aims to clarify when auditors should report such breaches and other significant matters to relevant regulatory bodies, thereby enhancing the audit's utility and informativeness.