Good news for the flood of companies that have reported internal controls weaknesses as they ready themselves to comply with Sarbanes-Oxley Section 404: Reported internal control weaknesses don't necessarily lead to increased securities class-action filings, according to a study of nearly 300 public companies.
An analysis by Deloitte & Touche and law firm Haynes and Boone LLP of nearly 600 specific internal control weakness disclosures at 290 public companies between November 2003 and August 2004 found little evidence of increased securities class actions.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access