Emerging Growth Companies Report More Material Weaknesses

A recent white paper by the PCAOB reports that listed Emerging Growth Companies (EGCs) reported a greater number of material weaknesses related to Internal Control over Financial Reporting (ICFR) than its listed non-EGC counterparts. Listed EGCs reported material weaknesses at a rate of 12% and listed non-EGCs at 6%. EGCs are companies that 1) have less than $1 billion in revenue and 2) have not sold common equity securities on or before December 8, 2011.

A copy of this white paper can be found at: https://pcaobus.org/EconomicAndRiskAnalysis/ORA/Pages/default.aspx