After years of steady decline, the percentage of adverse auditor attestations related to
management’s assessment of the quality of their internal controls for financial reporting has shown an uptick recently, says a U.S. research firm.
But experts see a positive message rather than cause for alarm.
“It’s not an indication that financial reporting is getting worse. It’s actually an
indication that the evaluation of internal controls is getting better,” said Trent Gazzaway, national managing partner of professional standards at Grant Thornton LLP, in Charlotte, N.C.