What’s common for some companies is their minimal attempt to fix weak internal controls. The Securities and Exchange Commission recently fined four companies for having ineffective internal controls: Grupo Simec S.A.B. de C.V., Lifeway Foods, Digital Turbine and CytoDyn. In its enforcement press release, the SEC told these companies that disclosure of ineffective internal controls wasn’t enough, but that they also needed to fix the problem.
In this article, Audit Analytics explains why the SEC’s press release was unusual and outlines what it means for other public companies.