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Internal Controls

January 27, 1997 | SHERWOOD ROSS, REUTERS; (Sherwood Ross is a freelance writer who covers workplace topics for Reuters.)
Controls put in place by chief executives may be flouted by employees, which could mean that when a new product flops or a scandal breaks it may be too late for the executive to save the day. "Most [CEOs] are not effectively controlling risk, nor are they leading others in their companies to do so," according to a survey by Louis Harris & Associates Inc. for accountants Coopers & Lybrand.
November 30, 2000
The Police Department has failed to install video cameras in its evidence rooms despite the recommendations of a 1998 audit, the city controller's office found. In a letter to Police Chief Bernard Parks and members of the Police Commission, Controller Rick Tuttle said that if the department had followed his advice two years ago, it could have deterred former Officer Rafael Perez from stealing drugs from an evidence locker.
July 30, 2003 | From Bloomberg News
Intel Corp., Pfizer Inc. and other companies on Tuesday urged the government's accounting oversight board to limit the scope of newly required financial-control audits so they won't become too costly and intrude on management's responsibilities. Public companies and accounting firms are at odds over how much scrutiny is needed before auditors should certify that a company has implemented adequate safeguards to prevent financial fraud. Accountants say detailed audits are required.
December 20, 2006 | Cyndia Zwahlen, Special to The Times
Small public companies that held out hope for a permanent exemption from the Sarbanes-Oxley corporate reform law were disappointed last week when the Securities and Exchange Commission proposed to ease -- not eliminate -- the law's requirement for annual reports on internal financial controls.
June 6, 2007 | Cyndia Zwahlen, Special to The Times
Time's up! That's the message for small public companies from the Securities and Exchange Commission, which met recently to give final approval to new guidelines and amendments to the Sarbanes-Oxley corporate reform law. The five-member commission didn't include a hoped-for extension of the Dec. 15 deadline for small public companies to comply with provisions that critics say are too costly and time-consuming.
December 26, 1985 | Associated Press
Congressional investigators have found that billions of taxpayer dollars are lost or mismanaged through the failure of more than half of the government's 427 accounting systems to meet federal requirements, the General Accounting Office said in a report Wednesday. "The major problems so far remain largely unchanged," the GAO said in its study, released three years after Congress passed the Financial Integrity Act to curb fraud, waste and abuse in government.
May 30, 2013 | By Ruben Vives
City leaders in scandal-battered Cudahy are asking the state to audit the city's finances and internal controls in the wake of a series of city hall bribery arrests. Last year, three officials in the working-poor L.A. County city -- including two long-term council members -- were hauled away by FBI agents for extortion and bribery. The cases revealed a city marred by corruption, election fixing and drug use in city hall, officials said. Now, the newly elected mayor and vice-mayor of Cudahy are asking State Controller John Chiang to audit the city's finances and internal controls.
The chairman of Guardian Savings & Loan tried to interest regulators last month in a plan to turn the failed Huntington Beach thrift into an employee-owned, minority-controlled financial institution. But the federal government, which seized the S&L in June, would have had to put up $25 million to make the deal go through, and "there's no money for that," William J. Crawford, the thrift's chairman and president, said Wednesday.
March 31, 2012 | By Wailin Wong
CHICAGO — Groupon Inc. revised its financial results for the fourth quarter and fiscal year, reporting a $14.3-million decrease in fourth-quarter revenue. The Chicago-based daily deals company said it had not set aside enough money for customer refunds. When this refund allowance was adjusted, Groupon posted a decrease in revenue. In a statement, the company acknowledged "a material weakness in its internal controls. " Groupon elaborated on these shortcomings in a filing with the U.S. Securities and Exchange Commission, saying that its financial procedures were insufficient for supporting "accurate and timely" reporting of its results.
January 29, 1998
Once again the Immigration and Naturalization Service has shot itself in the foot with sloppy management of the citizenship process. A federal grand jury in Sacramento has indicted 20 people on accusations related to corruption and overcharging by some private contractors that administer citizenship tests. There are questions regarding as many as 13,000 applications. Proper INS oversight surely would have prevented this embarrassment.
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