April 07, 2006
"This is like deja vu all over again" - Nortel to restate its restatements
Yogi Berra ... very funny.
Nortel ... not so much.
Nortel announced on Thursday, April 6th that it would be making additional corrections to its previously corrected financial statements (previous announcement was March 10th). Click here to read more.
This is the sad continuation of serial restatements by this company and diminishes their abilities as innovators in communications and technology. It also highlights the critical nature of effective controls over financial reporting and key business processes. This needs to be a core strength of every company.
What are the consequences of poor controls for Nortel? They include: increased reputational risk; reduced employee morale and increased turnover; increased cost of capital; loss of faith in management by many investors; and, a critical if necessary "distraction" to correct financial hygiene issues that are reducing the ability of the company to compete and thrive. So, is anyone out there for strong controls?
To affordably improve your company's internal controls over financial reporting and Sarbanes-Oxley compliance, please go to www.issuescentral.com and learn more about the Compliance Playbook(R). If you are a Canadian-based filers (either SOX or MI 52-109) please go to www.compliancepartner.ca and learn more about Compliance Partner(TM).
As for Nortel and financial restatements, what would Yogi Berra say? "It ain't over till it's over."
Nortel ... not so much.
Nortel announced on Thursday, April 6th that it would be making additional corrections to its previously corrected financial statements (previous announcement was March 10th). Click here to read more.
This is the sad continuation of serial restatements by this company and diminishes their abilities as innovators in communications and technology. It also highlights the critical nature of effective controls over financial reporting and key business processes. This needs to be a core strength of every company.
What are the consequences of poor controls for Nortel? They include: increased reputational risk; reduced employee morale and increased turnover; increased cost of capital; loss of faith in management by many investors; and, a critical if necessary "distraction" to correct financial hygiene issues that are reducing the ability of the company to compete and thrive. So, is anyone out there for strong controls?
To affordably improve your company's internal controls over financial reporting and Sarbanes-Oxley compliance, please go to www.issuescentral.com and learn more about the Compliance Playbook(R). If you are a Canadian-based filers (either SOX or MI 52-109) please go to www.compliancepartner.ca and learn more about Compliance Partner(TM).
As for Nortel and financial restatements, what would Yogi Berra say? "It ain't over till it's over."
