Sarbox shows up problems for Danka

Imaging systems company Danka is set to disclose a series of internal controls weaknesses in its 2004 year end filing to the SEC, prompted by Sarbanes-Oxley regulation.

Link: Sarbox: The appliance of compliance

The Nasdaq and LSE-listed imaging business said it would disclose weaknesses in its internal controls relating to IT general controls, revenue and billing processes, stock and rental assets custody and tracking process, and income tax process.

Danka CEO Todd Mavis said that an ‘exhaustive management assessment’ had identified the weaknesses, and ‘aggressive remediation activities’ would continue for another year.

It posted year end losses of $27.9m (£15.4m), including increased costs driven by $7.3m in Sarbox compliance external expenses, and a $3.6m bad debt adjustment relating to US trade debtors.

US-based CFO Mark Wolfinger has also announced his retirement. Wolfinger has served at the company since 1998.

Related reading