Financial Statement Fraud: Olympus Makes It Look Easy

What is a company to do when it wants to hide losses? Manipulation of the financial statements is the obvious first choice. It’s not hard. Sure companies have “internal controls,” which are supposed to include policies and procedures which ensure that financial information is properly recorded. But companies of all …

Article at CFO.com: When Your Compliance Program Fails

The steps to take when an employee comes forward with a fraud tip, whether the allegations are false or not. By Tracy Coenen, Contributor to CFO.com You think your company has a robust compliance program to prevent financial-statement fraud, asset misappropriation, Foreign Corrupt Practices Act violations, and other financial frauds. …

Dodd-Frank Whistleblower Rule Adopted by SEC Discourages Internal Reporting

The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted on July 21, 2010, established a whistleblower incentive program requiring the Securities and Exchange commission to provide monetary awards to whistleblowers who come forward with information about the violation of federal securities laws, including violations of the Foreign Corrupt Practices …

Why Audits Are Near Worthless (Yes, Internal Audit Too)

Francine McKenna at re: The Auditors has an interesting post and set of comments about internal audit functions at public companies and the importance of internal auditors. External auditors look at a company’s financial statements and a small amount of underlying transactions in order to issue a report that the …

Former Herbalife Director of Venezuela and Columbia Comes Forward With Fraud Claims, Reports Fraud Discovery Institute

Herbalife (NYSE: HLF) whistleblower says illegal acts likely responsible for region’s dramatic supervisor growth Herbalife (NYSE:HLF) executives identified Venezuela as a Top 10 market for the company in their May 2, 2008, conference call, and indeed, triple digit new supervisor growth was reported there in the first quarter. However, according …

“Whistleblowers” barred from testifying as witnesses in State Farm Insurance Hurricane Katrina case

Back in August 2006, I reported on Kerri Rigsby and Cori Rigsby, sisters who worked as independent adjusters for State Farm. The sisters were deemed “whistleblowers,” for their allegations of corruption at State Farm Insurance. The sisters came forward, claiming that there was fraud in the Biloxi and Gulfport field …

Cynthia Cooper’s book – Extraordinary Circumstances: The Journey of a Corporate Whistleblower

Cynthia Cooper, WorldCom whistleblower, is releasing her book in just few days. Extraordinary Circumstances: The Journey of a Corporate Whistleblower is her story. If it is anything like the speech I heard her give a few years ago at the Association of Certified Fraud Examiners Fraud Conference, it will be …