Less than a year after details of the 1973 Watergate scandal were exposed, the House Judiciary Committee's impeachment proceedings against President Richard Nixon resulted in his resignation from office.participation in the Vietnam War, hastening the end of the conflict. In the late 1960s, televised hearings of the Senate Foreign Relations Committee on the so-called Pentagon Papers solidified public opposition to continued U.S.As a result, several agencies were reorganized and a special White House commission was appointed to investigate evidence of corruption in all areas of government. In 1949, a select Senate subcommittee discovered corruption within the administration of President Harry S.Congress can also limit an agency’s power by reducing its funding in the annual federal budget process. Should Congress find evidence that an agency has incorrectly applied or exceeded its powers, it can pass a law overruling the action or narrowing the agency’s regulatory authority. The scope of Congress’ powers of oversight extends to virtually all programs, activities, regulations, and polices implemented by the presidential cabinet departments, independent executive agencies, regulatory boards and commissions, and the president of the United States. In empowering the legislative branch of government to oversee the executive branch, congressional oversight forms a key element of the system of checks and balances of power among the three branches of government.Congressional oversight is one of the “implied” powers granted to Congress by the “necessary and proper” clause of the Constitution.The main goals of congressional oversight are preventing waste, fraud, and abuse and protecting rights and civil liberties.Congress to monitor and change, if necessary, the actions of the executive branch, including the many federal agencies. Congressional oversight refers to the power of the U.S.Request that these special representations be highlighted and explained by management.ĭiscuss the status of the external auditors’ work before the earnings release.Įxternal auditors may indicate that they are “comfortable” with the results the company is about to release, but the reality is that auditors cannot provide final approval until their work is completed-so understanding what work is left to be completed is important.Īssess the risk that some event or finding could come to light before the actual filing date that could impact the preliminary results to be reported in the earnings release.Īudit committees should consider the company’s history, management experience, and the facts and circumstances. In addition to normal ongoing representations, external auditors sometimes add nonstandard items to address unusual transactions or events that occurred during the period. Understand any nonstandard representations in management’s letter of representation to the external auditors. Have management describe significant transactions or events that were discussed in the quarterly meeting. If the company maintains a disclosure committee, understand how it functions and who attends the meetings. ![]() ![]() But recent focus and interpretive guidance by the SEC staff warrant additional focus to ensure management’s use of non-GAAP measures is appropriate. In particular, audit committees should ensure that both positive and negative adjustments are included. Transparent disclosure of non-GAAP measures can be useful to investors. Pay attention to “special items” and non-GAAP measures - particularly in the earnings release. Request schedules quantifying the impact of both unusual transactions and significant changes in estimates impacting the current period. Consider having management highlight these areas within the draft filing document(s) as well. Have management prepare a summary memo highlighting areas of change (e.g., risk factors, disclosures, accounting policies, new events and developments) from the prior period. Ask management for help in better understanding what has changed in the current filing.
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