BELLEVUE, Wash., Oct. 20 /PRNewswire/ -- Entomo(R), Inc. a leading provider of software applications for revenue management and analysis including channel-sales operations, today released a new paper by Professor Niranjan "Chips" Chipalkatti of Seattle University.

A recent study of SEC filings has found nearly 70% of the internal control weaknesses resulting in restatements by public companies during 2004 - 2005 were attributable to problems with financial systems/procedures and revenue recognition.

The new paper "Overlooked Risks in Financial Reporting: Potential Control Deficiencies for Companies who Sell Through Distribution Channels" looks at companies that sell their products through distribution channels and examines how these restatements may be driven by key internal control deficiencies.

"Financial reporting by these companies depends heavily on inventory and point of sales (POS) data from their channel partners," said Niranjan "Chips" Chipalkatti, Associate Professor of Accounting at Seattle University. "This is data over which the original equipment manufacturer (OEM) has little control. To compensate, OEM's must pay greater attention to the design and testing of their own controls to ensure compliance with the Sarbanes-Oxley Act of 2002 and other regulatory requirements."

A free copy of Professor Chipalkatti's paper can be obtained online from Entomo at http://www.entomo.com/controls_study_request_form.htm .

About Entomo, Inc.

Entomo offers an integrated suite of software applications for revenue management and analysis, including channel-sales operations through partnerships and technologies from BEA Systems, Cisco Systems, Dell Computers, IBM Corp., Microsoft Corp., Oracle Corp., and Sun Microsystems. The suite includes solutions for POS data collection, revenue recognition, revenue projections, channel inventory reconciliation and valuation, promotions and rebates, and sales commissions. Especially designed for the channel-driven enterprise, our offerings replace spreadsheets and manual processes currently deployed in finance and sales operations departments, with a cost-effective automated system that ensures timely, accurate and auditable Sarbanes-Oxley compliant financial reporting. Companies that have deployed Entomo products include Atlas Copco, AMETEK Inc., FMC Technologies, NACCO Material Handling Group, Itronix Corp., Merix Corporation, Wacker Siltronic and WatchGuard Technologies. For more information, please call 425-372-0546 or visit http://www.entomo.com/.

NOTE: Entomo and SmartHub are registered trademarks or trademarks of Entomo, Inc. All other trademarks are the property of their respective owners.

CONTACT: Chris Baird, Marketing Communications of Entomo, Inc., +1-425-372-0546.

CONTACT: Chris Baird, Marketing Communications of Entomo, Inc.,
+1-425-372-0546

Web site: http://www.entomo.com/