The new rule, which the Securities & Exchange Commission is voting on today, will require company executives to show what internal controls they have in place in their annual reports and what they are doing to prevent fraud, according to the Washington Post.
This follows internal controls being blamed for accounting frauds at WorldCom and Rite Aid Corporation.
New chief auditor Douglas Carmichael said internal controls could be a significant deterrent to management fraud, although he admitted that they were not a foolproof solution.
The planned rule, the details of which are not yet known, has been praised by the American Institute of Certified Public Accountants, while most experts agree it is a positive step.
Mark McMullen joins the private client services team from Smith & Williamson
Merger between Clear & Lane Chartered Accountants and Magma Chartered Accountants was finalised on 3 February
BDO has taken its new partner intake to 23 during the first half of its financial year, including the appointment of five partners in five weeks
The firm reports 7.6% global fee income growth for the year ending 31 December 2016