October 2017 Article Archives

Greetings to all NSAC members from the President!

Published on October 12, 2017

It is hard to believe that the harvest season is here for many of our members! It does not seem that long ago that we were all talking about the wet/dry, hot/cold weather than seemed to stay around for most of March, April and May. The weather sure can vary a lot in just a few miles across the country!

Member Communication

As part of the National Board’s strategic initiatives we are looking to increase member communication. Providing updates throughout the year was something that was suggested to help keep all members informed and the web based Annual Meeting kicked off that effort. This message is a continuation of that effort and we hope you find this a useful part of your NSAC membership.

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COSO Releases Updated Enterprise Risk Management Framework

Published on October 12, 2017

The Committee of Sponsoring Organizations of the Treadway Commission released a long-awaited update Wednesday to its ERM Framework: Enterprise Risk Management–Integrating with Strategy and Performance, the first since 2004. 

The updated framework, developed by PricewaterhouseCoopers under the direction of the COSO board, aims to help organizations improve their approach to managing risk. COSO is also responsible for the recently updated internal control framework used by many auditors, and the ERM framework can also be used by accountants, auditors and consultants. The revamped framework highlights the importance of enterprise risk management in strategic planning, stressing the need to embed ERM throughout an organization to influence both strategy and performance. 

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3 Steps To Protecting Your Business From Workplace Fraud

Published on October 12, 2017

Every few months, a major fraud investigation hits the news. According to a new report titled Keeping Business Clean: A CGMA Guide to Countering Fraud & Corruption by the Association of International Certified Professional Accountants, despite awareness movements and advances in legislation, fraud and corruption continue to plague businesses. 

The World Economic Forum estimates that the typical organization can lose an average of 5 percent of its annual revenue to fraudulent behavior. The risk of fraud is increasing in magnitude in the current e-business environment since technology has enabled the methods of corrupt practices to evolve. 

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Companies shouldn't rush to adopt new hedge accounting standard

Published on October 12, 2017

The Financial Accounting Standards Board released its long-awaited hedge accounting standard this week, but companies may want to be careful about adopting it early, or else they could miss out on some one-time benefits. 

The accounting standards update for hedging takes effect for public companies in 2019 and private companies in 2020. But FASB is also allowing early adoption for companies if they want to begin using it right away. 

“Make sure you don’t rush to early adoption, and that you do actually take full advantage of all the transition elections you may have,” said Jon Howard, senior consultation partner in the accounting services group for financial instruments in Deloitte’s national office. 

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Embezzlement by Employees

Published on October 12, 2017

In the cult film "Office Space", workers at a technology company seek revenge for boring jobs and bad treatment by ripping off their employer via software that skims fractions of pennies with each transaction. Hilarity, guilt and accidental redemption ensue as the main character ultimately prepares to confess. 

Such pennies, in a real-world scenario, can add up more and over longer stretches of time than most employers imagine, according to a study of about 400 employee theft cases reviewed by insurance firm Hiscox. The study, expanded for 2016 to include firms over 500 employees, is based on public data, including from U.S. courts. 

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