Trans Global Group, Inc. (TGGI) recently conducted an evaluation of the effectiveness of its disclosure controls and procedures. As a publicly-traded company, TGGI is required by the Securities and Exchange Act of 1934 to carry out such evaluations to ensure adequate financial reporting and compliance with regulatory requirements. Despite acknowledging certain material weaknesses, the company has laid out plans to improve controls and procedures moving forward.
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Identified Weaknesses
Upon evaluating the design and operation of the company’s disclosure controls and procedures, TGGI’s Chief Executive Officer and Chief Financial Officer concluded that as of December 31, 2022, these controls were not effective. The material weaknesses in internal control over financial reporting were identified as a lack of well-established procedures for identifying, approving, and reviewing related party transactions.
Planned Improvements
To address these weaknesses and enhance internal controls, TGGI plans to implement a series of measures, including increasing personnel resources and technical accounting expertise within the accounting function. The company also intends to hire additional accounting experts as its turnover increases. Furthermore, TGGI has established an audit committee to oversee accounting controls and maintain compliance with control objectives.
Despite these planned improvements, it is important to note that no system of internal control can completely eliminate the risk of material misstatements in financial reporting. This is a known feature of the financial reporting process, and the implementation of safeguards can only help to mitigate, not eliminate, this risk.
Importance of Internal Controls Evaluation
The evaluation of internal controls over financial reporting is essential for maintaining investor confidence in a company’s financial reporting and overall stability. By identifying weaknesses and taking steps to improve its controls and procedures, Trans Global Group demonstrates a commitment to transparency, accuracy, and compliance with regulatory requirements.
Supporting Business Growth and Stability
In addition to its plans to strengthen internal controls, TGGI’s management is actively working towards expanding the business and improving its financial performance. This includes identifying potential operating businesses to acquire and securing funds to support these acquisitions. Implementing effective disclosure controls and procedures, along with a robust system of internal control over financial reporting, will further support TGGI’s growth and stability in the long term.
Investor Confidence and Compliance
As Trans Global Group continues to advance its business operations and improve its financial reporting processes, investors can expect greater transparency and compliance with regulatory requirements. This, in turn, will contribute to increased investor confidence, promoting sustainable growth and success for the company in the long run. In a business environment where accurate and timely financial reporting is of paramount importance, TGGI’s commitment to addressing material weaknesses in its internal controls and enhancing its procedures demonstrates responsible corporate governance and a dedication to maintaining investor trust.
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