Why Shareholders Should Be Cautious of These KPMG Audits, Despite SEC Assurances

SEC Chair Jay Clayton basically told investors “nothing to see here” when five KPMG partners were indicted for unlawfully using prior knowledge of confidential information from their regulator, the PCAOB. Francine McKenna quoted VEA Vice Chair Nell Minow in an article for Marketwatch: Corporate governance expert Nell Minow, the vice chair of ValueEdge Advisors, said…

Non-GAAP Measures: Questions and Insights

Cindy Fornelli of the Center on Audit Quality writes about perspectives from a series of roundtables with audit committee members, management, investors, securities lawyers, and public company auditors on non-GAAP reporting:   If GAAP is the bedrock, why do companies present non-GAAP measures? Participants were asked to share their views on what drives the presentation…

Are Auditors Reliable?

A new report from the International Forum of Independent Audit Regulators shows that global accounting watchdogs identified serious problems at 40 per cent of the audits they inspected last year involving companies in “riskier” situations, such as M&A deals. These included conflicts that compromised objectivity, and widespread failures to test the accuracy and reasonableness of…

The Danger Of Not Embracing ESG

According to Rivel Research Group, a firm that specializes in delivering actionable insight based on in-depth measurements of the investment community, ESG has six pillars: enhancement of market and accounting performance; lowering the cost of capital, a means to engage key shareholders; improving business reputation; fostering new revenue growth through product innovation; and aligning company…

VEA Comment to the SEC on Human Capital Disclosures Rulemaking Petition

VEA was proud to support the rulemaking petition at the SEC for better, clearer disclosure of human capital information.  This is the comment we have filed. September 27, 2017   Honorable Jay Clayton Chairman U.S. Securities and Exchange Commission 110 F Street. N.E. Washington D.C. 20549   Re: Human Capital Management Disclosures Rulemaking Petition  …

Lawsuit Challenges Failure to Report Climate Change Risk

A fascinating case brought against the Commonwealth Bank of Australia charges that failure to include climate change risk assessment is a material omission. a. CBA knew, or ought to have known, that CBA’s Climate Change Business Risks might have a material or major impact on the operations, financial position, and prospects for future financial years…

Recommendations of the Task Force on Climate-related Financial Disclosures

The Financial Stability Board’s industry-led “Task Force on Climate-Related Financial Disclosures” has issued its final report with standards and guidance for voluntary climate-related financial risk disclosures in SEC filings.  The most significant aspects are the imprimatur of the G20 and the credibility and support it lends to investor initiatives calling for portfolio companies to adopt its…