Tucows 2014 Annual Report Download - page 112

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KPMG LLP, our independent registered public accounting firm, has audited our consolidated financial statements
and expressed an unqualified opinion thereon. KPMG LLP has issued an attestation report on the effectiveness of our
internal control over financial reporting as of December 31, 2014 and issued an adverse opinion. These reports are set
forth at the beginning of Part II, Item 8 of this Annual Report on Form 10-K.
Remediation Plan for Material Weaknesses in Internal Control over Financial Reporting
In light of the material weaknesses identified above, the Company performed additional analysis and other post-
closing procedures to ensure that the Company’s consolidated financial statements were prepared in accordance with
GAAP and accurately reflect its financial position and results of its operations as of and for the year ended December 31,
2014. As a result, notwithstanding the material weaknesses as described above, management concluded that the
consolidated financial statements included in this Form 10-K present fairly, in all material respects, the Company’s
financial position, results of operations and cash flows for the periods presented.
In addition, subsequent to our December 31, 2014 fiscal year end, we began taking steps to redesign processes and
controls to ensure a more precise independent review is performed for manual journal entries and reconciliations, where
appropriate, relating to critical calculations and estimates. In addition, we are assessing tools and potential enhancements
to document, support and review manual journal entries and account reconciliation processes. We are also evaluating our
financial team organizational structure, and what changes to roles and responsibilities we can make to enhance controls
and compliance. We expect to continue our remediation efforts, including testing of operating effectiveness of new or
improved controls for a reasonable period of time. If appropriate, we expect to make further changes to our internal
controls to enhance or further develop the remediation plan we have already adopted.
Changes in Internal Control over Financial Reporting
Other than the material weaknesses noted above, there have been no changes in our internal controls over financial
reporting during the quarter ended December 31, 2014 that have materially affected, or is reasonably likely to materially
affect, our internal controls over financial reporting.
In evaluating our internal controls for 2014 we continued to rely on the Internal control – Integrated Framework
(1992) issued by the Committee of Sponsoring Organizations for the Treadway Commission. We plan to adopt the
Internal Control – Integrated Framework (2013) issues by the Committee of Sponsoring Organizations of the Treadway
Commission in 2015.
ITEM 9B. OTHER INFORMATION
None.
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