CRA was engaged by an international logistics company that had received whistleblower allegations relating to its Australian subsidiary associated with improper earnings management and financial statement disclosures. Our professionals assisted the company perform an internal investigation to assess the merits of the allegations. Professionals interviewed key accounting personnel, assessed historical accounting entries over a multi-year period, and assisted the company quantify the financial impact to improperly recorded entries in accordance with Australian GAAP for statutory reporting and US GAAP for consolidated reporting purposes. The Company verified the merits of the allegations and successfully quantified the impact of the improper accounting. The Company remediated various control weaknesses, terminated select senior management, disclosed findings to its auditors, and avoided the need to restate its prior-year financial statements.
“Bug bounty” demands: legal bane or information security boon?
A “bug bounty” request occurs when a self-described security researcher contacts a company, claiming to have discovered an information security vulnerability,...