|  | | 2006 News and Press Releases | | |
HEADLINE NEWS:
Audit Clears SEC's Financial Statements
Staff Writer – Washington Post
Securities Mosaic. November 16, 2006
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EXCERPT: Auditors gave the financial statements of the Securities and Exchange Commission a clean bill of health, a sign that the market watchdog has taken steps to fix problems that prompted a lawmaker last year to chide the agency for what he called ``hypocrisy.'' The Government Accountability Office, which reviewed the SEC's books for the fiscal year ended in September, said in documents issued Wednesday that the SEC had come close to fully resolving past weaknesses in its financial controls. The GAO had cited problems with how the SEC tracks penalties it levies, with its information systems controls and with its financial reporting process. Now, auditors say, those issues are far less serious than they were. This is the third year the SEC has allowed outside audit of its books and financial controls, which are designed to help prevent fraud and mistakes.
The problems were exposed in March 2005, the same time securities regulators were imposing stiff new rules that forced managers at publicly traded companies to assess their own controls. The rules have proven expensive and controversial and are the focus of an aggressive and well-funded business lobbying campaign. This week, leaders at the SEC and the Public Company Accounting Oversight Board, which oversees the audit industry, have been working to resolve differences in their approach to modifying the rules. |
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