(October 7 – 13:50 ET) –
The Securities and Exchange
Commission is proposing something
the Canadian Securities
Administrators have only talked
about to this point. The SEC is
recommending new rules to improve
the credibility of issuers’
financial statements, and
disclosure by corporate audit
committees.
The proposals are designed to
improve investors’ understanding of
the audit procedure, and to
enhance their responsibility to
ensure accuracy in disclosure.
The SEC is proposing to require
audit committees to include at
least three independent members.
Written charters should be required
for audit committees, and
companies’ interim financial
statements should be reviewed by
independent auditors before they
are filed with the SEC.
Companies listed on the NYSE,
AMEX or Nasdaq must improve their
disclosure about their
non-independent audit committee
members, the proposal says.
The proposals are open for 45
days of public comment.
-IE Staff
For more information, please see: