Free Webcast**: Coming to Terms with Short-Termism: Implications for Fraud
Event Date: July 7, 2016
Event Time: 1:00 PM - 2:30 PM Eastern
Recommended CPE Credits: 1.5
Recommended NACD Skill-Specific Credits: 1.5
Field of Study: Auditing (AU)
Prerequisite: A basic understanding of: Corporate Management, Risk Management and Corporate Governance
** Earn free CPE or NACD Skill-Specific Credit
Goals for long-term value creation for a company’s investors may conflict with incentives that are introduced by short-term pressures, such as analysts’ expectations, internal profit targets, and compensation bonuses tied to short-term performance metrics. Emphasis on short-term results can increase the risk of financial reporting fraud if there isn’t alignment between the short-term goals and the long-term strategy. Organizations may not fully appreciate the long-term impact that the need to meet or beat short-term expectations – from the street, or even from a supervisor or business unit leader – has on the actions that employees take. And employees may not fully realize the implications to the long-term strategy of the decisions they make when they give in to those pressures.
Learn how audit committees, financial executives, and internal auditors can help to improve the connection and identify ways to mitigate the risks of short-termism, and how the external auditors factor those risks into their audit planning and scoping. Our panel of experts will discuss what successful companies do to reinforce the alignment between potentially conflicting goals, and provide actionable recommendations that each supply chain member can implement in their organizations. We encourage all of the key players in the financial reporting supply chain—audit committees, financial executives, internal auditors, and external auditors—as well as compliance professionals, to register for this informative program.
Gain insights into how the different members of the financial reporting supply chain can help to improve the balance and identify ways to mitigate the risks of short-termism. Our panel of experts will discuss what successful companies do to reinforce the alignment between seemingly conflicting goals, and provide actionable recommendations that each supply chain member can implement in their organizations.
Center for Audit Quality
Cindy Fornelli is Executive Director of the Center for Audit Quality (CAQ), a position she has held since the CAQ was established in 2007. In 2015, Fornelli was honored for the seventh time by Directorship magazine as one of the 100 most influential people on corporate governance and in the boardroom. Accounting Today has named her one of the 100 most influential people in accounting for nine consecutive years. Prior to joining the CAQ, Fornelli was the Regulatory and Conflicts Management Executive at Bank of America and the Deputy Director, Division of Investment Management of the U.S. Securities and Exchange Commission.
The Conference Board Governance Center
Doug Chia is the Executive Director of The Conference Board Governance Center. He joined The Conference Board in February 2016. Previously he had served as assistant general counsel and corporate secretary of Johnson & Johnson. Before joining Johnson & Johnson in 2005, he served as assistant general counsel, corporate, of Tyco International, and practiced law at the global firms Simpson Thacher & Bartlett and Clifford Chance, both in New York and Hong Kong.
National Association of Corporate Directors
Karen Horn is a Senior Managing Director at Brock Capital Group. She is currently the Chairman of the NACD Board of Directors and was co-Chairman of the NACD Blue Ribbon Commission on Long Term Value Creation. Karen is a director of Simon Property Group (chairs the nominating and corporate governance committee), Vice Chairman of the National Bureau of Economic Research and Vice Chairman of the US-Russia Foundation. Former boards have included Eli Lilly and Company (chaired the compensation committee and lead director), Norfolk Southern Corporation (chaired the audit committee) and T. Rowe Price Mutual Funds. Her career included positions as President of the Federal Reserve Bank of Cleveland and CEO of Bank One, Cleveland. She holds a Ph.D. In Economics from the Johns Hopkins University.
Executive Consulting Group LLC
Bill McCracken is the President of the Executive Consulting Group. From January 2010 to January 2013, Bill was CEO at CA Technologies, one of the world's largest information technology management software companies where he now serves as an executive advisor to the company. Bill joined CA Technologies Board of Directors in 2005, and held the roles of both non-executive and executive chairman from 2007 – 2010. Prior to joining CA Technologies, Bill held numerous executive positions at IBM during his 36-year tenure.
Jose Rodriguez is a senior audit partner in the Greensboro, NC office of KPMG, and the Executive Director of the KPMG Board Leadership Center. He also serves as an SEC Reviewing Partner and a Foreign Filing Review Partner and was previously the Chief Operation Officer – Global Audit, Office Managing Partner for KPMG’s Global Services Center and the East Regional Professional Practice Partner. Jose was admitted to the Partnership in 1995, in the Miami office. Additionally, Jose was a member of KPMG’s U.S. and Americas Board of Directors from 2006 to 2011 and served as the Lead Director in 2011.