Companies Fined for Failing to Remediate Internal Control Problems
Four public companies have settled with the Securities and Exchange Commission (“SEC”) after being charged with failing to resolve their internal control reporting failures. The SEC said the companies disclosed material weaknesses in internal control over financial reporting (“ICFR”) for seven to ten straight annual reporting periods. Such weaknesses involved certain high-risk areas of the companies’ financial statement presentation. Grupo Simec, a Mexican iron and steel manufacturer, disclosed material weaknesses in its filings from 2008 to 2017. However, in 2015 and 2016, company management did not test its controls. The SEC alleged Grupo Simec failed develop a control structure and. Read More.