April 19, 2006
Ouch! Control problems and restatements are hitting close to home.
This is more than a little ironic. The co-chair (Herb Wander) of the SEC Small Business Advisory Committee can't be feeling too good about this . Click here to read more.
The real issue is that financial and accounting controls have not been a strong suit of the business community. The Committee has undertaken extensive work over the past year but appears to have largely become focused on cost, not on compliance. Compliance comes before cost because the lack of solid controls is always more expensive that getting it right in the first place. Do committee members think that financial and accounting controls are strong for the smaller and microcap companies? Methinks not, so I'm not sure how their recommendations protect investors.
To see how your company can affordably avoid the misfortune of poor internal controls please go to www.issuescentral.com and learn about the Compliance Playbook(R). For Canadian-based filers please go to www.compliancepartner.ca to learn more about the Compliance Partner(TM) product.
The real issue is that financial and accounting controls have not been a strong suit of the business community. The Committee has undertaken extensive work over the past year but appears to have largely become focused on cost, not on compliance. Compliance comes before cost because the lack of solid controls is always more expensive that getting it right in the first place. Do committee members think that financial and accounting controls are strong for the smaller and microcap companies? Methinks not, so I'm not sure how their recommendations protect investors.
To see how your company can affordably avoid the misfortune of poor internal controls please go to www.issuescentral.com and learn about the Compliance Playbook(R). For Canadian-based filers please go to www.compliancepartner.ca to learn more about the Compliance Partner(TM) product.
