Enforcement Action and Recent Compliance Problem

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The medical manufacturing corporation was found to have perpetrated accounting fraud by its branches in order to meet its sales estimates. It also made illicit bribes to international authorities in order to boost its revenue in certain nations. The firm increased its income through early tracking purchases of goods that were either in stock or were not shipped to customers. In many branches, Alere Inc. has wrongly reported sales. In Colombia and India, the firm has used its dealers or contractors to buy off international officials. The corporation has made inaccurate entries in payment data. The event of premature recognition of revenue occurred between 2011 and 2016. The events in Columbia and India occurred between 2011 and 2013. The company failed to file its proxy solicitations by failing to indicate that it had paid foreign officials in India and Colombia. The organization should have submitted the correct information with the commission before solicitation in compliance with disclosure rules (SEC.Gov). The company failed to comply with section 10B of the Security Exchange Act which calls for limits and accountability for swaps that are security-based as well as trader reporting which is enormous. The second law it broke is held in section 13 of the Security Exchange Act which highlights the filing of periodicals and other reports. Further, it violated rules parts of rules 10, 12, and 13 contained in the Security Exchange Act. It is violated the section 17 of the Securities Act which condemns fraudulent interstate transactions. The company had to revise its financial statements more than thrice in 2015. It has had to revise its financial statements of 2013, 2014 and 2015. The company had misstated its financial statements from 2011 to 2016. The company’s South Korean subsidiary intentionally made an early report, and other branches used inappropriate revenue recognition practices.

C. The Securities and Exchange Commission took action in May 2015 when it first asked Alere Inc. to revise its financial statements. For the commission to reach the verdict, it took effect in June 2017.

D. the company was ordered to pay $9,200,000 in civil penalties as well as $3,328,689 disgorgement and interest to the United States Treasury totaling to $495,196 immediately before the accrual of interest.

E. the company shall cease from the violation of the various sections of the Exchange Act and Rules as well as the securities act. Alere Inc. submitted an offer of settlement which the commission accepted. Further, the company will pay the required fines and penalties.

Personal Opinion on Compliance in Business

A. Before to the assignment, I was aware of the definition of the term GRC. It is defined as the strategy used by an organization used to manage the firm’s overall governance, the organization’s risk management, and ensure that the company’s activities comply with the law. Governance refers to the processes that the directors of a corporation have to undertake to lead the organization towards its goals. Risk management relates to the preparation and managing of viable risks that could act as a hindrance to the organization achieving its objectives. Compliance is the company operating by the established laws and regulations as well as adhering to voluntary boundaries. GRC is synchronization across governance, risk management and compliance in pursuit of efficiency in the firm.

Compliance is the process of following obligations as stated in laws, and the industry standards as well as the firm’s standards. It also incorporates the adherence to ethics, contractual agreements, as well as policies and procedures. Compliance gives information to the board of directors and the rest of the staff on the roles that are attributed to good corporate governance. Law enforcers have become more rigorous with the increased scope of regulation within the industry. The management of compliance risk is instrumental in the role of compliance in the organization as it mitigates the risk of sanctions, financial losses, and bad publicity. The work of compliance professionals includes tracking and assessment of laws and regulations, the provision of education and direction, handling of documentation, monitoring, and auditing.

B. Yes I was aware that compliance had become an industry of its own.

C. Some of the jobs from the Career Builder website are pharmacy and Medicare compliance manager, compliance accountant, Import/Export compliance specialist, FLSA compliance specialist, payroll tax compliance specialist, compliance specialist, and senior level compliance specialist among others. Yes, I think one of the jobs listed on the site will be in my future after graduation because of the current trend of the need for compliance in every industry. The salaries for the jobs in the compliance industry are somewhat lucrative.

D. Compliance helps in reducing the risk associated with legal problems, improve business operations, improve employee retention, as well as foster public relations. As a manager, I will approach the compliance function by establishing that within the organization, integrity is the governing ethic so that the firm is held to a more robust standard.

E. Compliance regulations change on a regular basis. It is therefore essential to ensure that the organization is always up to date with these rules.

Works Cited

“SEC.Gov. Medical Manufacturer Settles Accounting Fraud Charges.” Sec.Gov, 2017, https://www.sec.gov/news/press-release/2017-178.

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