AQRM Red Flags: Controls

A company’s control environment, as established by company management, determines the standards, processes and structures that dictate operations, financial reporting and compliance. In general, issues in a company’s control environment, including control weaknesses, late filings and cybersecurity incidents, carry substantial risk for material impacts. Due to the pervasive nature of the control environment on financial reporting and disclosures, these issues are significant red flags for investors and stakeholders.

In this article, Audit Analytics further examines these red flag events concerning a company’s control environment.