While debate goes on over internal control requirements for public companies of all sizes, private companies face control risks that range from overly-complex spreadsheets to the controller who decides to shun the IRS.
One of the greatest sources of controversy in the business world in recent months has been whether small public companies are capable of maintaining the level of internal controls prescribed by section 404 of the Sarbanes-Oxley Act.
But even as that debate rages on, say experts, private companies — which are not subject to Sarbanes-Oxley — face serious threats as a result of poor internal controls; the smaller their staffs, and the fewer their resources, the greater the risks.
By: Helen Shaw, Writer, CFO Magazine
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