Companies are describing extensive details about the measures undertaken to remediate internal control weaknesses disclosed as per Section 404 of The Sarbanes-Oxley Act of 2002. That’s according to Compliance Week’s latest analysis of internal control disclosures made during the month of June 2005. Some of the disclosures—including excerpts and the original filings—are available to subscribers in the box below, right.
The weakness disclosures made during June 2005 were typical of prior months’ disclosures. A majority of the weaknesses were related to problems with companies’ financial systems and procedures. Among the several problems cited by $28 billion auto parts maker Delphi Corp., for example, were “neffective or inadequate accounting policies to ensure the proper and consistent application of GAAP throughout the organization.” Pacific Capital Bancorp noted that it “did not maintain effective controls over approval of general ledger journal entries.”
