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When You See Something, Do Something

Companies must address financial reporting problems fast – or face the wrath of an invigorated SEC.
The number of enforcement actions taken against companies rose in 2015. Regulators are increasing their focus on internal controls and whether companies have sufficient programs in place to detect potential wrongdoing. The increase in activity may be attributed in large part to the greater number of tools that are available to the Securities and Exchange Commission (SEC). For example, the SEC has increased its use of use of technology and analytics, clawbacks of executive compensation, and incentives that support the activities of whistleblowers to uncover potential misconduct or wrongdoing. These undertakings have implications for companies, which need to investigate potential issues quickly and, at the same time, make sure that their businesses can continue to operate smoothly.

In this article, published in Metropolitan Corporate Counsel, Susan Markel, Managing Director of Alix Partners discusses what corporate counsel can do to address potential problems proactively as well as the steps they can take once an issue surfaces.

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