SEC Improves Internal Controls
According to a recent Government Accountability Office (“GAO”) report, the Securities and Exchange Commission’s (“SEC”) internal controls are improving. In fiscal 2015, only six of the SEC’s 58 internal supervisory controls tested had deficiencies. Comparative to the GAO’s 2013 review, the six deficiencies mark a significant reduction from the 27 flaws identified in fiscal 2011. The GAO noted that none of the flaws are likely to inhibit the SEC from ensuring their divisions and offices carry out actions accordingly. Specifically, the watchdog agency found two flaws without clear control activities, three that showed a major element did not align with. Read More.
Topics: Division of Corporation Finance "Corp Fin", Division of Enforcement, Dodd-Frank Act, GAO Report, Government Accountability Office "GAO", Internal Controls, Office of Compliance Inspections and Examinations, Securities and Exchange Commission "SEC"
Luis Aguilar Lashes out at SEC-Issued Fines in Affiliated Computer Services Case
After the Securities and Exchange Commission (“SEC”) issued penalties in a case regarding alleged financial reporting fraud, Luis Aguilar criticized the agency last week for being too lenient in its settlement order. Per the case, former chief executive officer Lynn Blodgett and ex-chief financial officer (CFO) Kevin Kyser of Affiliated Computer Services (“ACS”) were accused of organizing an equipment manufacturer to redirect through the company’s pre-existing orders that were previously received from one of its customers. As a result, the ACS’ reselling of transactions gave the illusion of strong revenues during fiscal year 2009. While Blodgett and Kyser settled with. Read More.
Ceresney Praises SEC’s Division of Enforcement Accomplishments
As the keynote speaker at Compliance Week 2014, U.S. Securities and Exchange Commission (“SEC”) official Andrew Ceresney reflected on the Division of Enforcement’s (“the Division”) achievements from the past year. Ceresney, the Director of the SEC’s Division of Enforcement, highlighted successes including: Creating specialized units within the Division to concentrate on areas of significant concern; Ensuring fair trading and equal information access within the securities markets; Creating task forces within the Division to focus on areas outside of the ones covered by specialized units; and A new method to settlements that creates the effective settlement of cases while fulfilling accountability. Read More.
SEC’s White Speaks at Trustees Dinner
At the May 20th Financial Accounting Foundation Trustees Dinner, U.S. Securities and Exchange Commission (“SEC”) Chair Mary Jo White reflected on global accounting standards matters concerning the SEC. During the event in Washington, D.C., she hinted that the SEC is still considering the addition of International Financial Reporting Standards (“IFRS”) for domestic registrants. Although no timetable was given for when the issue would be addressed, White noted that the interests of U.S. investors would be front and center during the IFRS consideration process. White also supported the opinions expressed by other SEC members. Such views included the country’s role in. Read More.