According to a review of regulatory filings during the month of May, 51 companies disclosed material weaknesses or significant deficiencies in internal controls, or provided updates on the status of their control-improvement processes.
That number is up from 39 similar disclosures in April, and 28 in March. (See box at right for previous months’ data). The increase is not a surprise to most industry watchers, who expect the number of disclosures to rise as we approach the Nov. 15 deadline for Section 404 of Sarbanes-Oxley.
