SOX and derivatives

There is an interesting article on TCS Daily today that looks at SOX, it is interesting when compared to Jack Ciesielski blog entry for today at the Accounting Observer Blog. The TCS piece is a good example of how business people downplay the benefits of SOX and accentuate the costs. But many times SOX work has uncovered weak internal controls on basic accounting functions. Mattson Technologies 8-K is a good example, not derivatives, not Fin 46, rather it was:

In connection with the preparation and review of the Company's financial statements for the year ended December 31, 2005, management became aware that the Company's previously reported results for the first, second and third quarters of 2005 contained errors related to its recognition of revenue, assessment of inventory valuation, recording of depreciation and amortization expense for certain assets, and estimation of statutory liability for severance payments earned by certain foreign employees.