Qualtrics discloses ICFR weakness in IT controls

Software company Qualtrics disclosed the discovery of a material weakness in its internal control over financial reporting (ICFR) for the 2022 fiscal year.

The weakness concerned “management’s risk assessment process over information technology general controls, including certain controls over logical access and change management, and process level controls, including information used in the execution of those controls, that impacted our financial reporting processes,” the company said in a regulatory filing Friday.

The company’s 2022 financial statements were audited by KPMG, which issued an adverse opinion on the effectiveness of the company’s ICFR, Qualtrics added in its 10-K filing with the Securities and Exchange Commission. The weakness didn’t result in any material misstatements in its financial statements, the company said.