Growing Number of ICFR Issues Following IPO

Public companies must assess their system of internal controls over financial reporting (ICFR) to comply with the Sarbanes-Oxley Act of 2002 (SOX). This assessment requires companies to report if the ICFR systems are in compliance with SOX Section 404, providing reasonable assurance regarding the achievement of an entity’s objectives. In the case of public filers, it is to ensure that the internal control structure and procedures for issuing financial reports are effective.

In this exclusive report, Audit Analytics explores trends in companies reporting internal control deficiencies immediately following an initial public offering.