Remediation On Previously Disclosed Weaknesses 902
lekatis last edited by
VERITAS DGC INC Energy and Utilities
Searching EDGAR, I found a very interesting paragraph.
Remediation Update On Previously Disclosed Weaknesses
During the first quarter of fiscal 2005, we did not make any change to our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
However, subsequent to the end of the first quarter of fiscal 2005, due to the material weaknesses noted, our Chief Executive Officer and Chief Financial Officer, in conjunction with other members of management and our Audit Committee, conducted a review of our internal control over financial reporting.
As a result of this review we have taken the following actions, many of which are ongoing in nature:
Increased the size and scope of our internal audit department
Increased our documentation, review and remediation efforts with regard to internal controls
Increased the formality of our review processes, such as account reconciliation and customer contract review
Increased the segregation of duties between individuals within each accounting function
Installed a software-enabled system to effect monitoring and change management of our internal controls
Required, on a quarterly basis, support certification regarding accounting and controls from operational management and others with particular knowledge or span of control
Implemented the use of an external agency for our whistle-blower hotline
Involved corporate finance in the hiring and review of divisional accounting personnel
Established a formal evaluation and implementation process regarding changes in accounting rules
Within the division where the internal control deficiencies were noted we have:
Replaced certain accounting personnel
Changed reporting relationships
Reorganized the accounting function with increased segregation of duties
Evaluated and are addressing staffing requirements, including quantity and qualifications of personnel
Who said that SOX didn’t change the corporate world?