Aspen Aerogels Reveals Two New Control Deficiencies, No Known Misstatements
Insulation maker says it fixed the material weaknesses the same quarter they were discovered, then warns the discovery of additional, future control deficiencies is possible.
November 7, 2022
Upon implementing a new enterprise resource planning (ERP) system Aspen Aerogels (ASPN), a manufacturer of aerogel insulation products for the energy infrastructure and building materials markets, revealed two new control deficiencies. The deficiencies are related to whether system access and privileges granted to users were appropriately segregated, specifically:

—Aspen did not design and implement effective user access controls to adequately restrict user access and the ability to modify financial data within the ERP system

—Aspen did not design and implement effective change management controls to monitor the appropriateness of changes made to the configurations of automated controls during the implementation period and the initial launch support

Though Aspen says the control deficiencies did not result in a known misstatement, it concluded material weaknesses in the company’s internal controls over financial reporting (ICFR) exist.

Notably, Aspen says it remedied the control deficiencies in the same quarter they were discovered. This differs from other firms with control deficiencies that wait a period of time to discern whether remedies are effective.

At the end of the filing, Aspen warned investors of a new risk— the possibility of identifying new material weaknesses over ICFR in future periods.
Related: CBT
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