Good morning. Agricultural giant survey Archer Daniels Midland (ADM) Accounting issues related to its nutrition division have made headlines over the past few years.
ADM announced on Tuesday that it had reached a settlement with the U.S. Securities and Exchange Commission (SEC) to resolve an investigation into ADM’s previous reporting of intersegment sales, without admitting or denying any wrongdoing. As part of the settlement, ADM agreed to pay a $40 million fine.
ADM’s years of profit-shifting efforts have made its star nutritionals unit appear to be achieving ambitious growth targets despite weak demand and declining profit margins, according to the SEC. Three former executives, including two former chief financial officers, have been charged. The two have settled while Vikram Luthar, the most recent financial director and chief financial officer from 2022 to 2024, is preparing for a court battle.
“ADM has implemented significant changes to its financial leadership team and financial controls,” the company said in a press release on Tuesday. Monish Patolawala will serve as ADM’s Executive Vice President and Chief Financial Officer effective August 1, 2024. He had previously been in 3M. you can Please read my article on ADM and Luthar.
Ardmore (No. 50 (Fortune 500) is one of the latest high-profile financial scandals involving large public companies. Despite existing regulations and safeguards, fraud continues to occur. But can artificial intelligence save us?
Technology tools from advanced analytics to artificial intelligence are increasingly used to detect and prevent fraud, and They are already in use today. Recently published in Journal of the School of Accounting and Financial Studies Explore the role of artificial intelligence in reducing risk and enhancing financial security through accounting fraud detection. this Researchers found Maintaining a detailed audit trail of the AI decision-making process ensures transparency and traceability.
However, AI is not a stand-alone solution; the findings show that it must be combined with strong internal controls and human oversight to provide optimal protection against fraud and enhance financial security.
Ultimately, it comes back to the question of who is involved, and when it comes to accounting procedures and compliance, the responsibility falls on the CFO.
Cheryl Estrada
sheryl.estrada@fortune.com
Ranking list
charles macon Appointed Chief Financial Officer anytime, anywherean operator of airport dining and hospitality experiences at major North American airports. Macon will oversee On The Go’s financial strategy and work with the executive and ownership teams. He has more than 20 years of financial and operational leadership experience in multi-sector hospitality, consumer services and private equity-backed businesses.
Patrice Laune Appointed Chief Financial Officer Altanina specialty pharmaceutical company. Launay has twenty years of experience in accounting, finance and public company leadership. He served as CFO of a Nasdaq-listed company, leading the company through its initial public offering and later returning to oversee SEC reporting and support additional financing.
event
according to Data from S&P Global Market IntelligenceBy 2025, technology and media M&A will reach unprecedented levels, driven by large-scale deals in artificial intelligence, defense and media. Total spending across more than 5,400 transactions reached $557 billion, a 56% increase from 2024.
Dealmaking was driven by large deals in artificial intelligence, defence, select fintech, media and sports. Investment bankers expect M&A to expand to smaller deals and broader areas by 2026.
go deeper
The Federal Reserve decided on Wednesday Keep interest rates stable The range is 3.50% to 3.75%. as expected About 97% of investorsThe decision has been largely priced in by the market, with U.S. stocks continuing to rise amid continued optimism driven by artificial intelligence, with the S&P 500 surpassing the 7,000-point mark for the first time in history.
Policymakers stressed the need to balance easing inflationary pressures with remaining solid economic growth and labor market stability. The 10-2 vote to keep rates steady included dissent from Governors Stephen Miran and Christopher Waller, who both favored a quarter-point cut. Powell’s term expires in May. Waller was widely considered the best candidate Come and replace him.
At a news conference, Chairman Jerome Powell emphasized the Fed’s independence, saying: “We have not lost it. I don’t believe we will lose it. I certainly hope we won’t.” wealth report.
overheard
“Large consumer goods companies still have huge advantages: capital, clout, manufacturing efficiency and trusted brands. These companies can still win, but only if they stop trying to recreate the past and start building for the present.”
—Oisin Hanrahan, co-founder and CEO of Keychain, an AI-driven manufacturing platform, writes in an article about the future of the largest consumer packaged goods (CPG) company in the United States. wealth Opinion draft The title is “How Social Media Upended 75 Years of Playbook for Big Consumer Products Companies.”