GM Says Accounting Controls 'Currently Ineffective'

Now that’s a headline to send a shiver up the spine of every director at every public company in North America. If GM’s legions of accountants can’t control their financial reporting….

This is exactly why every public filing (and prospectus, loan document, etc.) needs to have a representation not just that the CEO/CFO “is unaware of any material misrepresentation” but that the CEO/CFO “is unaware of any material misrepresentation after due inquiry.”

MRM