Corporate America’s finance staff now has some hard evidence for their bosses, regulators and investors to support recurring claims of an overwhelming workload. The internal controls over financial reporting aren’t what they should be, and a shortage of skilled personnel is the most common cause.
According to a Compliance Week analysis of the disclosures at 400 public companies that reported material weaknesses within the last year, “personnel” topped the list of problem areas. Of the 400 randomly sampled companies, 41.5 percent said their weaknesses were related to insufficient staffing, poor training, related issues, including segregation of duties.
