According to a review of internal control disclosures made during the month February 2005, 18 companies disclosed material weaknesses in their internal control over financial reporting, and five companies reported deficiencies. Some of the latter disclosures were considered “significant” deficiencies.
The total number of 23 disclosures is up slightly from the 18 reported in February 2004; however, the increase is actually more dramatic than it appears, as Compliance Week now tracks only disclosures from the 3,000 largest public companies. If the same rule was applied to the February 2004 numbers, there would have been only four or five disclosures.
