04 March 2021 - Article
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 https://www.sec.gov/news/press-release/2018-207
This article was written with contributions from Tim Piscatelli.