Monthly Archives: December 2016

Falsity

One normally relies on auditors.  But if the auditor issues a false audit report and then tries to cover it up, what happens?

“Brazil Arm to Pay $8 Million Penalty,” The Wall Street Journal, December 6, 2016 B8.  Foreign affiliate of Deloitte Touche paid a fine to the Public Company Accounting Oversight Board for such conduct, after also failing to cooperate with the investigation.  Deloitte reportedly replaced management at the affiliate.

Did Deloitte fail to adequately supervise its affiliate?  Who at the parent will get disciplined?  Who’s your auditor?

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Filed under Accuracy, Business Case, Compliance, Controls, Corporation, Culture, Duty, Duty of Care, Employees, Governance, Internal controls, Oversight, Risk

Following the rules

The entire area of Governance, Risk, and Compliance deals with assessing the risks of certain behaviors and developing and enforcing controls (people, process, and technology) to prevent the identified hazard from occurring, or mitigating the impact.  Information Governance is a subset of GRC.

“Criminal Complaint Filed in Fatal Crash,” The Wall Street Journal, December 5, 2016 A11.  There are international rules that require planes to have certain amounts of fuel onboard before taking off.  The flight dispatcher who reviewed the flight plan for the recent charter flight that crashed in Columbia allegedly objected to the flight plan as originally filed, which only had enough fuel to reach Medellin, but not enough extra.  The on-board dispatcher, again allegedly, told her not to worry, and she allowed the plane to depart.  It crashed after running out of fuel.

The rules were ignored, the policy not followed.  People died.  Now people are chasing the dispatcher (who has fled the country).  Who else is also accountable?  The airline?  The charter company?

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Filed under Collection, Controls, Duty, Employees, Governance, Government, Internal controls, Management, Operations, Oversight, Third parties, Use, Use