The SEC reached settlements with four public companies that had allowed lapses in their financial reporting controls to fester unchecked for years—up to a decade in some cases.
All four disclosed the material weaknesses to investors year after year, but didn’t act to address the controls until contacted by the Securities and Exchange Commission. They neither admitted nor denied the SEC findings.
“Adequate internal controls are the first line of defense in detecting and preventing material errors or fraud in financial reporting,” SEC Chief Accountant Wes Bricker said in a statement.
- Lifeway Foods Inc. restated its financial reports twice ...