Personnel issues are the second most frequently cited internal control weakness that companies are disclosing as they comply with Sections 302 and 404 of The Sarbanes-Oxley Act. Those issues are second only to problems with financial systems and procedures.
According to Compliance Week’s most recent analysis of SEC filings during the month of August, 54 percent of the disclosures were related to financial systems and procedures, and 27 percent were related to personnel issues.
