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.
Simon Wright of CareersinAudit.com discusses how an effective cyber defence force is critical to businesses worldwide and how internal auditors can make the transition to a new career in cyber security
The FRC has said that the investigation will 'consider, but not be restricted to, issues regarding misstated accounting balances'
Craig Maxwell joins the audit and assurance team in Scotland
Stephen Grayson to join the audit department in Manchester