Internal Controls

Now that calendar year accelerated filers are putting the finishing touches on their internal control reports required by Sarbanes-Oxley Act Section 404, many are wondering how many companies will disclose one or more material weaknesses, and what the marketplace reaction will be. Trying to forecast the number and impact is like forecasting earthquakes in California; […]

Below is a sample list of companies making internal control remediation disclosures during the month of January 2005. Please be aware that the excerpts below are just that: excerpts. The complete SEC filings are available for those who would like to review the complete disclosures in greater detail. For related information on the list below, […]

This profile features Larry Rittenberg, chairman of the Committee of Sponsoring Organizations (COSO), and accounting professor at the University of Wisconsin. How did you come to be chairman of COSO? [Laughs.] Bad luck? Hard work? Well, I’ve been at the University of Wisconsin almost all my career, and been active in the profession both through […]

Few would dispute that these are remarkable times in the history of capital markets, as public companies undertake major accounting changes to meet new regulatory requirements. But to what lengths might companies go to protest? Exasperated by the enormity of it all—and resigned to the inevitability that they’ll have unfavorable reports to file—some public companies […]

The Securities and Exchange Commission announced on Feb. 7 that it would host a roundtable on Section 404 of the Sarbanes-Oxley Act, solicit feedback on implementation challenges, and consider a further delay for small companies and foreign issuers. The roundtable, which will include representatives from public companies, auditors, and other parties—including the Public Company Accounting […]

Below is the list of companies disclosing material weaknesses or deficiencies in internal controls—or providing material updates on control improvement processes and remediation efforts—during the month of January 2005. Please be aware that the excerpts below are just that: excerpts. The complete SEC filings are available for those who would like to review the complete […]

Below is a sample list of companies warning of “potential” significant deficiencies, or potential problems with specific controls, during the month of January 2005. Please be aware that the excerpts below are just that: excerpts. The complete SEC filings are available for those who would like to review the complete disclosures in greater detail. For […]

Here come the adverse opinions. According to a review of internal control disclosures made during the month January 2005, several companies have begun disclosing that their internal control over financial reporting was not effective as of their fiscal year end, and that they expected their auditor would issue an adverse opinion on the effectiveness of […]

Last week, the Securities and Exchange Commission and the Public Company Accounting Oversight Board provided additional answers to questions about Section 404 of The Sarbanes-Oxley Act. Both statements, published in the form of “frequently asked questions,” addressed the recent extension provided to smaller issuers in meeting internal control requirements. In November 2004, the SEC gave […]