Remember all the moaning over Section 404 of Sarbanes-Oxley — the one that forced companies to check to see if their internal controls actually worked, and to fix them if they did not? Well, a new survey by Compliance Week Magazine, looking at large companies, finds that the number of material weaknesses is down sharply.
From the magazine’s announcement:
“The Compliance Week study looks at ‘material weaknesses’ in financial reporting that companies must disclose in their annual reports and examines such disclosures at 426 of the S&P 500 companies. A total of 14 weaknesses were reported by 11 companies. By comparison, when Compliance Week examined material weaknesses at more than 400 randomly selected large companies in 2006, almost every single company reported at least one material weakness, and the group as a whole reported more than 800.”
See full Article.
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