Do CEOs who sign off on the company's financials get to hide behind "Nobody informed me of the problems with the numbers" defense when the SEC comes after them?
Mostly, no.
Depends on whether controls have been circumvented and whether the CEO had knowledge.
If a fraud was being perpetrated including collusion going undetected at lower levels, he'd have a shot. If he had knowledge, maybe depending on what the mitigation performed was. Otherwise, SOX is not kind to the ignorant.
What about if he says that he never bothered to read all of the financial reports and he never talked to the CFO about the fact that they knew the numbers were crap 6 months earlier?
Do CEOs who sign off on the company's financials get to hide behind "Nobody informed me of the problems with the numbers" defense when the SEC comes after them?
Do CEOs who sign off on the company's financials get to hide behind "Nobody informed me of the problems with the numbers" defense when the SEC comes after them?
Mostly, no.
Depends on whether controls have been circumvented and whether the CEO had knowledge.
If a fraud was being perpetrated including collusion going undetected at lower levels, he'd have a shot. If he had knowledge, maybe depending on what the mitigation performed was. Otherwise, SOX is not kind to the ignorant.
Do CEOs who sign off on the company's financials get to hide behind "Nobody informed me of the problems with the numbers" defense when the SEC comes after them?
Mostly, no.
Depends on whether controls have been circumvented and whether the CEO had knowledge.
If a fraud was being perpetrated including collusion going undetected at lower levels, he'd have a shot. If he had knowledge, maybe depending on what the mitigation performed was. Otherwise, SOX is not kind to the ignorant.
What about if he says that he never bothered to read all of the financial reports and he never talked to the CFO about the fact that they knew the numbers were crap 6 months earlier?
No. That won't work.
I encourage you to read the contents of the certifications signed by the CEO and CFO submitted with each periodic report filed with the SEC pursuant to Rules 13a-14(a) and 13a-14(b) of the Securities Exchange of 1934, as amended.
Do CEOs who sign off on the company's financials get to hide behind "Nobody informed me of the problems with the numbers" defense when the SEC comes after them?
Mostly, no.
Thanks, Enron!
Yes, and World Com. Those companies changed the entire regulatory platform on which public companies exist. They also provided the big accounting firms with employment for life.
Do CEOs who sign off on the company's financials get to hide behind "Nobody informed me of the problems with the numbers" defense when the SEC comes after them?
Mostly, no.
Depends on whether controls have been circumvented and whether the CEO had knowledge.
If a fraud was being perpetrated including collusion going undetected at lower levels, he'd have a shot. If he had knowledge, maybe depending on what the mitigation performed was. Otherwise, SOX is not kind to the ignorant.
What about if he says that he never bothered to read all of the financial reports and he never talked to the CFO about the fact that they knew the numbers were crap 6 months earlier?
No. That won't work.
I encourage you to read the contents of the certifications signed by the CEO and CFO submitted with each periodic report filed with the SEC pursuant to Rules 13a-14(a) and 13a-14(b) of the Securities Exchange of 1934, as amended.
I assume this was not a rhetorical question.
Nope that was rhetorical as well, based entirely on what Rosenstein just did today.
Do CEOs who sign off on the company's financials get to hide behind "Nobody informed me of the problems with the numbers" defense when the SEC comes after them?
Mostly, no.
Thanks, Enron!
Yes, and World Com. Those companies changed the entire regulatory platform on which public companies exist. They also provided the big accounting firms with employment for life.
Enron didn't workout too well for Arthur Anderson.
Do CEOs who sign off on the company's financials get to hide behind "Nobody informed me of the problems with the numbers" defense when the SEC comes after them?
Mostly, no.
Thanks, Enron!
Yes, and World Com. Those companies changed the entire regulatory platform on which public companies exist. They also provided the big accounting firms with employment for life.
Enron didn't workout too well for Arthur Anderson.
It worked out okay. Most of the partners got cushy jobs with the remaining Big 4, and their business increased three-fold with guaranteed SOX-compliance work for life.
Do CEOs who sign off on the company's financials get to hide behind "Nobody informed me of the problems with the numbers" defense when the SEC comes after them?
Mostly, no.
Thanks, Enron!
Yes, and World Com. Those companies changed the entire regulatory platform on which public companies exist. They also provided the big accounting firms with employment for life.
Enron didn't workout too well for Arthur Anderson.
It worked out okay. Most of the partners got cushy jobs with the remaining Big 4, and their business increased three-fold with guaranteed SOX-compliance work for life.
Worked out for the next 4-5 firms down. The line for the Big 4 moved up, and a lot of real nice engagements rolled down to the next tier.
Do CEOs who sign off on the company's financials get to hide behind "Nobody informed me of the problems with the numbers" defense when the SEC comes after them?
Mostly, no.
Thanks, Enron!
Yes, and World Com. Those companies changed the entire regulatory platform on which public companies exist. They also provided the big accounting firms with employment for life.
Enron didn't workout too well for Arthur Anderson.
It did for the others, where all the AA accountants went to work.
Do CEOs who sign off on the company's financials get to hide behind "Nobody informed me of the problems with the numbers" defense when the SEC comes after them?
Mostly, no.
Thanks, Enron!
Yes, and World Com. Those companies changed the entire regulatory platform on which public companies exist. They also provided the big accounting firms with employment for life.
Enron didn't workout too well for Arthur Anderson.
It did for the others, where all the AA accountants went to work.
Do CEOs who sign off on the company's financials get to hide behind "Nobody informed me of the problems with the numbers" defense when the SEC comes after them?
Mostly, no.
Thanks, Enron!
Yes, and World Com. Those companies changed the entire regulatory platform on which public companies exist. They also provided the big accounting firms with employment for life.
Comments
I encourage you to read the contents of the certifications signed by the CEO and CFO submitted with each periodic report filed with the SEC pursuant to Rules 13a-14(a) and 13a-14(b) of the Securities Exchange of 1934, as amended.
I assume this was not a rhetorical question.