What Weakness?


According to an analysis by Compliance Week, the number of material weaknesses reported by large companies nosedived in 2007, largely due to SOX section 404 and improvements in internal control and the financial reporting community.

Compliance Week’s Material Weaknesses in Internal Control Over Financial Reporting analyzed 10-K and 10-K/A filings for 426 companies from the S&P 500. Of that group, 11 companies reported a total of 14 material weaknesses. The top problem areas included taxes (six reported weaknesses), financial procedures and personnel (two each), and revenue recognition and documentation (one each). The remaining two material weaknesses were considered in the area of “other accounting.”

Compliance Week performed the same analysis in 2006 with dramatically different results—nearly 900 material weaknesses were reported that year.

Source: www.complianceweek.com.

SPONSORED REPORT

Get your clients ready for tax season

These year-end tax planning strategies address recent tax law changes enacted to help taxpayers deal with the pandemic, such as tax credits for sick leave and family leave and new rules for retirement plan distributions, as well as techniques for putting your clients in the best possible tax position.

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.