Protiviti

Sarbox bodes well for Robert Half

Tue, 08 Jan 2008 06:59:59 -0500

The crunch on Wall Street has had a big effect on the staffing industry, which has taken its lumps as demand from financial firms falls off. But Barron's makes a case that Robert Half has been unfairly tarred. Half's focus is on mid-management accounting and financial jobs, and that segment continues to be powered by the Sarbanes-Oxley requirements. Most financial executives are still in hiring mode across the economy, though that could always change if the economy ebbs into recession. One could argue that the looming requirement that smaller companies comply with 404 will create additional demand. Keep an eye on Half's Protiviti unit. Revenues have dipped but only slightly. The unit has really staffed up with consultants; it will either sink or swim.

For more:
- here's the Barron's article

Has your company achieved "rebalancing"?

Tue, 13 Nov 2007 06:59:59 -0500

In the third year of Sarbanes Oxley compliance, some internal audit staffs have successfully "rebalanced," according to a Protiviti poll. That basically means that they are resuming more traditional duties as well as Sarbox duties. The idea is that Sarbox compliance was so traumatic that for three years, internal auditors have devoted less time to other areas. This makes sense. A lot of internal audit teams have figured it all out, so to speak. So they can start thinking about IT security, capital issues and other compliance initiatives. It has to be said, however, that at many places, this "rebalancing" has been achieved with more employees and enhanced resources. I don't think anyone will argue that the process cannot be further refined.

For more:
- here's the survey results

Related articles:
- Audit committees evolve, more focus on IT
- IT Watch: Oracle continues to focus on compliance

ALSO NOTED: PwC settles with Justice Department for $2.3 million; CIOs still grappling with compliance after five years;

Tue, 21 Aug 2007 06:59:58 -0400

> PwC settles with Justice Department for $2.3 million. Article

> Private placements: A good way around Sarbox. More trading venues emerge. Article

> More on risk and Sarbox. Article

> Academic predicts the death of Sarbox. Article

> Protiviti angling for more J-SOX business. Article

> CIOs still grappling with compliance after five years. Article

> Yet another retrospective on the 5th anniversary of Sarbox. This one from Web CPA.

> CA's Kumar reports to prison. Article

> Rigases jail term begins. Article

And finally ... Battle between punk rockers turns on accounting. Article

Sarbanes-Oxley gives rise to new accounting service providers

Mon, 21 May 2007 20:01:39 -0400

Recall that Sarbanes-Oxley banned accounting firms from providing consulting services to their audit clients--for good reason. That gave rise to a new group of service providers. The need to handle risk assessments, tax-related consulting and IT-related work, among other things. One firm that has distinguished itself is Smart Business Advisory, based in the Philadelphia area. Great Hill Partners, a private equity firm, just sunk $60 billion into the business, which is in hyper growth mode. There are a host of competitors. Huron Consulting Group, which was formed by refugees from Arthur Andersen. Navigant Consulting, Protiviti, a unit of recruiter Robert Half International, and FTI Consulting. Most of the established companies are looking to expand by acquisition. We'll likely see some roll-ups emerge soon enough.

For more:
- here's an article from the Philadelphia Inquirer

Recruiter pain a signal of Sarbox uncertainty

Mon, 23 Apr 2007 20:01:39 -0400

Robert Half International, a big headhunter-type firm, has benefited from the rise of Sarbanes-Oxley. Like a lot of executive search companies, there was law-generated turnover that kept them busy. In addition, its Protiviti unit fared very well as demand soared for its independent internal audit and risk-assessment consulting services. So it really seemed to have hit the Sarbox sweet spot. But the company missed its first-quarter estimates. And the company guided analysts lower for the second quarter--to the 40 to 43 cents per share range. That compares with previous estimates in the 48 cents range. One issue seems to be that more companies are scaling back their risk-assessment work or putting off until the issues are better clarified. If more companies are scaling back, in a sense, that means the drive to narrow the scope of Sarbox is working. If they are merely postponing, we could see a really frenzied rush once, make that if, the guidance from regulators is made explicit. Interesting.

For more:
- here's the AP article via Forbes

ALSO NOTED: Options scandal red flags; Hong Kong market bests New York and London;

Mon, 23 Oct 2006 20:01:38 -0400

> So what do we make of Jeff Skilling's near-record 24-year sentence? Well, in some ways, he's the guy that spawned the whole Sarbanes-Oxley movement. It's because of Enron that we are where we are today. Your elevated pay and fancy job titles, your new prestige and job marketability all flow to some extent from what he did at Enron. Just a thought. Article

> Good marketing: Protiviti offers a free guide to Sarbanes-Oxley compliance. Article

> Does your board use a tally sheet to monitor CEO pay? The practice is recommended, but your company is hardly alone if it doesn't, according to a new survey. Article

> London's AIM has gotten all the publicity, but the market in Hong Kong may be the hottest exchange for IPOs these days. The anti-Sarbox crowd has certainly taken note. Article

> Options impropriety red flag: Keep your eyes on directors who sit on the boards of more that one implicated firm. Article

> An interesting point: Most valuation models do not value back-dated options that much higher than out of the money options. Of course, a lower strike price is always better. Article

> Here's an update on a trend we've been following: Higher turnover among CFOs at top companies. Article

> This analysis of the Brazilian stock market, known as BOVESPA, suggests that even if Sarbanes-Oxley were repealed, it might not reverse current trends in IPO issuance away from the United States. Article

> Compliance issues can be complicated when dealing with offshore outsourcing partners. The process is trickier, but it is no less important. Article

And finally ... Corporate social responsibility can really pay off. Article