The latest quarterly result of the company showed that the “material weakness” in the internal controls on financial reports, which led to an increase in the risk of errors, showed the latest quarterly result of the company.
The report said that the company conducted an evaluation of its disclosure and controls and found that the procedures were not effective. He pointed to “not designing and preserving official policies, operations and controls to analyze complex transactions, as well as the need for additional accountants who have the required experience in regulating reporting SEC.”
The results come after the company recorded a net loss of $ 31.7 million for the first quarter, which ended in cash, monetary rewards and short -term investments worth $ 759 million.
“The TMTG administration decided that the material weakness is primarily linked to its failure to design and maintain official accounting policies and operations and controls for analyzing and recording income registration properly as well as the need for additional accountants employees with the required experience in organizing SEC reports,” the company said in a statement.
The results raise the risk of “a reasonable possibility not to prevent or detect financial errors of the entity’s financial data in a timely manner,” according to the statement.
The media group said it has carried out treatment measures, including the employment of additional accountants with the background and knowledge required to correct problems.
This story was originally shown on Fortune.com
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