AIG Financial Reporting

By Steven Marlin Courtesy of InformationWeek

American International Group Inc. said Monday that its internal control over financial reporting was ineffective as of Dec. 31, 2004. As a result the insurance company's independent auditor, PricewaterhouseCoopers LLP, will issue an adverse opinion with respect to AIG's internal control over financial reporting.
The company disclosed that an internal review uncovered control deficiencies, including the ability of some former members of senior management to circumvent internal controls, ineffective controls over accounting, and ineffective balance-sheet-reconciliation processes.

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