Free Pricing | JCPenney Coupons | Pizza Hut Coupons | Home Depot Coupons
Red flags: At least 9 companies snagged by Sarbanes

Red flags: At least 9 companies snagged by Sarbanes

by Rick Turoczy on March 28, 2005

After spending millions of dollars and putting in months of effort to comply with the law’s Section 404, which kicks in this year, many companies are reporting serious problems with their internal controls. At least nine public companies in Washington, ranging in size from smaller concerns like Internet security provider Watchguard Technologies Inc. to giants like Shurgard Storage Centers Inc., have reported deficiencies or “material weaknesses” in their internal controls. Even Starbucks Corp. was swept up in the fray.

Eleven percent of public companies nationwide have reported such deficiencies or weaknesses, according to the Washington, D.C.-based CFO Executive Board, a division of business research company Corporate Executive Board.

Many of the problems relate to calculating, reviewing and accounting for taxes, particularly income taxes and international tax issues. Other companies are saying they lacked the necessary personnel and expertise to review internal controls, perhaps due to a decade of corporate downsizing of finance and accounting departments, according to the CFO Executive Board as well as a Business Journal review of the Securities and Exchange Commission filings of local companies.

Red flags: At least 9 companies snagged by Sarbanes

Leave a Comment

Previous post:

Next post: