US Corporate Law News: SEC sues, confirming interim financial statements must be 'reviewed'

30 September 2018 | Applicable law: US

On September 21, 2018, the SEC announced charges against five public companies for submitting financial statements in their quarterly reports that had not been reviewed by an independent, external auditor. 

Regulation S-X provides that interim financial statements must be subject to a review conducted by an independent, external auditor prior to the statements being included in quarterly reports filed with the Commission. The five lawsuits are the SEC's first enforcement proceedings against a company for violating the Regulation S-X interim review requirement. Without admitting or denying wrong-doing, the five companies agreed to settle the SEC's charges, and the agency assessed a total of $250,000 in penalties.

For more information see  here.

This article was written with contributions from Tim Piscatelli.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.


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