BDO in the Boardroom The Board’s Engagement in 10A Investigations
Jan 6, 2021
22:03
Join BDO's Center for Corporate Governance Amy Rojik as she discusses the challenges and considerations boards face in navigating a SEC 10A investigation with Seth Friedman, Partner with McDermott, Will & Emery and Christopher Tower, BDO’s National Assurance Managing Partner Audit Quality and Professional Practice.
Key Takeaways
- The audit committee and the auditor have very clear, specific and time sensitive responsibilities when an illegal act is suspected.
- Company management and the audit committee should involve the auditor as early as possible when an illegal act is suspected.
- 10A investigations tend to be incredibly dynamic, require iterative processes and often require independent experts to identify the full scope of the wrongdoing.
- Communications – timely and transparent – are necessary between the auditor and the audit committee and are expected by the SEC.
- Vigilance is strongly encouraged in the current environment where many organizations are experiencing rising economic and operational pressures and incentives to commit fraud are increasing.