Nov 25, 2013
From the Advisory Institute
ForensicFocus | November 2013
The SEC’s Division of Enforcement — with the support of its new chairman, Mary Jo White — is now refocusing its efforts on identifying, investigating and prosecuting accounting fraud. This renewed focus will likely increase the number of SEC investigations undertaken by the Enforcement Division.
Recent developments include:
- The creation of a Fraud and Audit Task Force, which will dedicate full-time resources to proactively identify possible accounting irregularities
- The use of data analytic tools to identify potential accounting fraud
- The prospect of new risk-based initiatives being undertaken.
It is as important as ever to review your anti-fraud programs and controls relating to financial reporting due to these initiatives. Failure to take preventive steps could translate into increased exposure for public company personnel, officers and directors involved with financial reporting, particularly those who sign Section 302 certifications, (and sub-certifications) or prepare SEC filings.