PracticeAuditSEC to crack down on disclosures

SEC to crack down on disclosures

The Securities and Exchange Commission is to monitor the annual reports of all Fortune 500 companies' filing with it during 2002.

The move forms part of a bid by the SEC to step up its attempts to understand and crack down on accounting disclosure made by US corporations.

An SEC statement, said it would focus on disclosures that seemed critical to understanding a company’s results, but would also look at those that seem to ‘conflict significantly with generally accepted accounting principles or commission rules, or to be materially deficient in explanation or clarity.’

SEC chairman, Harvey Pitt, recently stated bogus pro forma financial statements that make a loss look like a profit, without explaining this clearly, would almost certainly be viewed as fraudulent or confusing.

Links

Progress on global rules tops agenda

Related Articles

EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1w Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

4w Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

1m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

2m Emma Smith, Managing Editor
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

1m Emma Smith, Managing Editor
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

1m Alia Shoaib, Reporter
KPMG rocked by South African corruption scandal

Audit KPMG rocked by South African corruption scandal

2m Alia Shoaib, Reporter