Remediation On Previously Disclosed Weaknesses 902

  • VERITAS DGC INC Energy and Utilities
    Very interesting.
    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?

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