SEC chief accountant shines spotlight on audit committees

Abstract

Purpose

To explain and analyze remarks concerning the importance and responsibility of corporate audit committees made by US Securities and Exchange Commission (SEC) Chief Accountant Wesley Bricker before the Baruch College Financial Reporting Conference on May 3, 2018.

Design/methodology/approach

Discusses Mr Bricker’s remarks in three principal areas: the role of audit committees in clearly understanding non-GAAP measures presented to the public, the attentiveness of audit committees to disclosures regarding changes in market risks, and the importance of independent, diverse thinking on corporate boards, and particularly, audit committee, brought by independent directors as an element of strong corporate governance.

Findings

The coming months may offer a better indication whether Mr Bricker’s speech is simply a specific point of emphasis from the Office of the Chief Accountant or is perhaps intended to foreshadow a contemplated or ongoing enforcement initiative.

Originality/value

Expert guidance from experienced lawyer with specialties in SEC investigative and enforcement actions, securities litigation, accountants’ defense, white collar criminal defense and corporate investigations

Citation

Stroup, S.G. (2018), "SEC chief accountant shines spotlight on audit committees", Journal of Investment Compliance, Vol. 19 No. 4, pp. 4-5. https://doi.org/10.1108/JOIC-06-2018-0042