Note: A version of this article was first available to subscribers of Accounting Quality Insights by Audit Analytics on Bloomberg, Eikon, FactSet, and S&P Global. Recently we reviewed four companies fined by the Securities and Exchange Commission on January 29, 2019, … Continue reading
Category Archives: Internal Controls (ICFR – SOX 404)
Reasons for an Amended 10-K: 2018
Form 10-K, an annual report filed by US-based public registrants, is the most comprehensive source of information regarding a company’s financials and its underlying business. These reports are thoroughly scrutinized by investors and other users, which explains why they need … Continue reading
SEC Enforcement Targets Ineffective Controls – Who Else Is at Risk?
The Securities and Exchange Commission recently fined four companies for having ineffective internal controls. In its enforcement press release, the SEC told the four companies, Grupo Simec S.A.B. de C.V. [SIM: NYSE], Lifeway Foods [LWAY: Nasdaq], Digital Turbine [APPS: Nasdaq] … Continue reading
Sixteen Year Review of Audit Fee and Non-Audit Fee Trends
Audit Analytics has released its annual audit fees report, Sixteen Year Review of Audit Fee and Non-Audit Fee Trends, which focuses on the audit and non-audit fees paid and disclosed by accelerated and large accelerated filers over a sixteen-year period. … Continue reading
Adopting the 2013 COSO Framework: Fiscal 2017 Update
On May 14, 2013, COSO released an updated version of its Internal Control – Integrated Framework. The original version, which was released in 1992, was superseded by the 2013 version – effective for fiscal years ended after December 15, 2014. … Continue reading
SEC Registrants with Poor Cyber Controls
On October 16, 2018, the SEC’s Division of Enforcement issued an investigative report regarding cyber-related fraud’s effect on public company internal controls. The report reviewed nine cases in which public companies’ electronic communications were used to perpetrate fraudulent payments. All … Continue reading
SOX 404 Disclosures: A Fourteen Year Review
The Sarbanes-Oxley Act of 2002 was passed by Congress to better protect investors. Section 404 of this act (SOX 404) requires companies to review their internal controls over financial reporting (ICFR) and declare whether they are “effective” or “ineffective”. In … Continue reading