More than 14 percent of large public companies will receive failing grades on their internal controls, according to the latest Sarbanes-Oxley Section 404 internal control disclosure research by AuditAnalytics.com.

Among 2,963 accelerated filers that disclosed their Section 404 opinions as of May 15, 12.25 percent, or 363, received material weakness opinions, AuditAnalytics.com reported.

According to the research firm, taking into account expected material weakness opinions associated with non-timely filers and projected restatements of 404 opinions arising from restatements, that percentage will exceed 14 percent.

According to the firm's research, the leading predictor of an adverse Section 404 opinion is a significant year-end or auditor-initiated adjustment -- an issue that AuditAnalytics said was identified in 53.3 percent of the failing grades and "inferred in many more."

In addition to the Section 404 opinions, Securities and Exchange Commission filers have reported more than 650 financial restatements in a little more than six months.

With respect to areas of accounting where the most troubles were found, tax accounting (27.7 percent) and revenue recognition (25.5 percent) were the most prevalent, the company said.

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