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URL:  http://boards.fool.com/financial-reporting-question-23911284.aspx

Subject:  Financial Reporting Question Date:  3/31/2006  8:58 AM
Author:  roochyroo Number:  756 of 766

I am a Hidden Gem subsriber and recently read the "6 Danger Signs You Can Check in 15 Minutes" report and found it to be quite informative. I am a shareholder of TIE (Titanium Metals) and read their most recent 10-K. In Item 9A entitled "Controls and Procedures" there was a discussion about material weaknesses in TIE's disclosure controls and procedures. There were conflicting opinions (what a surprise) on TIE's Yahoo message board regarding the significance of this disclosure (i.e. ranging from whether it is a simple statement designed to comply with Sarbanes-Oxley requirements to whether this is a red flag for what is obviously a high-flying company). I figured I would ask the Fools and and/or their subscribers' for their opinion on this subject since they have undoubtedly reviewed far more 10-Ks than I. So that the opinion is "informed" I have pasted below a portion of Item 9-A from TIE's 10-K:

"A material weakness is a control deficiency, or a combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. In connection with management's assessment of the Company's internal control over financ