Nautilus 2005 Annual Report Download - page 64

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Table of Contents
•
System users are receiving additional training on the effective and efficient use of the system to encourage data accuracy.
•
System reporting is being enhanced based on identified business needs, including daily sales and standard margin reporting among
numerous other reports.
The Company has made considerable progress in its efforts to remediate this material weakness since December 31, 2005. As on-going
remediation continues, the Company is focusing upon training and education efforts so that operating effectiveness will be demonstrated over a
period of time sufficient to conclude that the material weakness has been remediated.
Remediation Efforts on the Internal Controls Surrounding Analyzing and Recording Contingencies
•
Enhancements to the operation of the system implementation controls are being developed. As such, the implementation of the ERP
for International operations has been postponed until 2007 to enable the Company to effectively execute the implementation thereby
limiting the risk of similar issues arising in future implementations.
The following remedial actions have been undertaken to address the material weakness in the controls for analyzing and recording
contingencies:
•
Additional training is being provided to the accountants responsible for determining the financial impact of each contingency.
•
The importance of the review function is being reiterated to the senior members of the accounting department who have been
assigned responsibility for review of accounting estimates.
The Company has made considerable progress in its efforts to remediate this material weakness since December 31, 2005. As on-going
remediation continues, the Company is focusing its training and education efforts so that operating effectiveness will be demonstrated over a
period of time that is sufficient to conclude that the material weakness has been remediated.
Except for the implementation of the ERP system mentioned above, there have been no changes in the Company’s internal control over
financial reporting during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect,
the Company’s internal control over financial reporting.
63
•
An additional level of review has been implemented requiring all significant accounting estimates be reported to and reviewed by the
CFO and Controller on a monthly basis.