Buried in a compliance survey published by a security software company was an interesting anecdote about the confidence of executives in their upcoming SOX 404 “pass-fail” test. According to the survey, conducted by Waltham, Mass.-based Netegrity, when asked how likely it is that their company receive an unqualified opinion of their internal controls by their […]
Internal Controls
Posted inInternal Controls
51 Internal Control Disclosures In May
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). […]
Posted inInternal Controls
Risky Business: Assessing And Managing Risk
Management’s most important job is identifying, assessing and managing risk; how well it’s perceived to perform this role is often reflected in a company’s share prices. After shocking corporate defalcations, high-profile prosecutions, Sarbanes-Oxley’s passage and dozens of new regulatory requirements, focus on risk management has become clouded and diffused. This, in turn, often means management […]
Posted inInternal Controls
92% Of Internal Auditors Found Internal Control Gaps
In a recent survey of 200 internal auditors, over 90 percent reported significant gaps in their organization’s internal control framework. According to the survey, conducted by risk and compliance consulting firm Jefferson Wells International and the Institute of Internal Auditors, the greatest number of the respondents (34 percent) cited lack of process control-related documentation. Another […]
Posted inInternal Controls
Is That A Reportable Condition Or A Significant Deficiency?
What’s the difference between a reportable condition and a significant deficiency in your internal controls? Well, so far, that’s depended on whom you ask. A survey of SEC filings shows that companies are already confused about the terms. According to James DeLoach, managing director at internal auditing and risk consulting firm Protiviti, “The term ‘reportable […]
Posted inAccounting & Auditing
Distilling SOX 302, 404 & 906
Since the Sarbanes-Oxley Act was passed in July 2002, most analysts in the field agree Sections 302 and 404 are the most complex and costly of what is widely regarded as the most onerous piece of the corporate governance legislation.
Posted inInternal Controls
Protiviti, Stellent To Collaborate On Compliance Platform
Stellent, a $78.5 million content management company that addresses SOX 404 through a “Sarbanes-Oxley Solution,” will announce this week that it plans to collaborate on a compliance platform with internal audit and risk consulting firm Protiviti. The co-marketed solution will combine Protiviti’s industry expertise with Stellent’s content management framework. In a recent conversation with Compliance […]
Posted inInternal Controls
39 Internal Control Disclosures In April
According to a review of regulatory filings during the month of April, 39 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 28 similar disclosures in March, 18 in February, and 23 in January. (See box at right for […]
Posted inInternal Controls
SEC Mulling Some Relief On Internal Control Rules
The U.S. Securities and Exchange Commission is considering a move to relieve companies from having to assess the financial- reporting processes at certain previously off-balance-sheet entities, an SEC accounting official said.
Posted inInternal Controls
Weak Internal Controls Are Really “Worst Practices”
As a forensic accountant, my first contact with clients often occurs when they suspect they’ve been victimized by fraud; usually they’re right. Initially, my job is to determine the nature and extent of the theft, to identify the perpetrators and, if possible, to help them recover the loss. Most often, fraud victims are shocked and […]
