News & Analysis as of

Audits Regulation S-X

Holland & Knight LLP

Watts What You Say? SEC Brings a Battery of Charges Against EV Startup Company

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The SEC on Feb. 29, 2024, announced settled charges against Lordstown Motors Corp. (Lordstown) for allegedly misleading investors about sales prospects for the Endurance, Lordstown's flagship pickup truck for the electric...more

Latham & Watkins LLP

SEC Adopts Climate-Related Disclosure Rules

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On March 6,2024, in a 3-2 vote, the US Securities and Exchange Commission adopted final rules requiring registrants to disclose certain climate-related information in registration statements and annual reports....more

Holland & Knight LLP

Smackdown in SPAC Town: SEC Penalizes Pair of Auditors and PCAOB Tags In

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The SEC did not take time off for the summer when it comes to enforcement activity involving auditors of special purpose acquisition companies (known as SPACs and addressed by us previously). While others may have been...more

Seward & Kissel LLP

SEC Settles Charges with Accounting Firm for Quality Control Deficiencies

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Who may be interested: Audit committees, Compliance professionals - Quick Take: The SEC recently settled charges against an accounting firm for alleged systemic quality control failures and violations of audit standards,...more

Mayer Brown Free Writings + Perspectives

SEC’s Acting Chief Accountant Releases a Statement on Critical Points to Consider When Contemplating an Audit Firm Restructuring

The Acting Chief Accountant of the Securities and Exchange Commission, Paul Munter, recently released a statement regarding critical points to consider when contemplating an audit firm restructuring.  In recent years, audit...more

McGuireWoods LLP

SEC Modifies Auditor Independence Standards

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On Oct. 16, 2020, the U.S. Securities and Exchange Commission (SEC) adopted final rules amending the auditor independence requirements of Rule 2-01 of Regulation S-X. The SEC noted that amendments to the auditor...more

Goodwin

SEC Adopts Rule Providing New Regulatory Framework For Fund-Of-Funds

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In the News. The Securities and Exchange Commission (SEC) announced that it adopted Rule 12d1-4 under the Investment Company Act of 1940 (the 1940 Act), providing a new regulatory framework for fund-of-funds and final...more

Faegre Drinker Biddle & Reath LLP

SEC Settles Charges of Auditor Independence Violations for $8 Million

The SEC announced settlements with an auditing firm (the “Firm”) and one of its partners relating to violations of certain auditor independence rules involving nineteen audit engagements with fifteen SEC-registrant issuers. ...more

BCLP

Securities and Corporate Governance Update – July 2019

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This newsletter discusses noteworthy updates, key regulatory decisions and upcoming compliance reminders. ...more

WilmerHale

PCAOB Offers Guidance on Communications to Audit Committees Related to Independence

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In response to audit firm requests for guidance and a number of deficiencies identified during the Public Company Accounting Oversight Board’s audit firm inspections process, the PCAOB has recently released new Staff Guidance...more

WilmerHale

Recent Enforcement Action Serves as a Reminder of the Need to Complete Audit Firm Review of Interim Financial Statements Before...

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On Friday, the Securities and Exchange Commission announced that it had settled enforcement actions against five companies for violating the Regulation S-X requirement that interim financial statements included in quarterly...more

Cooley LLP

Blog: Clayton says Dodd-Frank rules not going anywhere

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For those of you who have been waiting for those big changes to Dodd-Frank to materialize, don’t hold your breath; at least as far as the SEC is concerned, the vast majority of those rules are expected to remain in place. In...more

K&L Gates LLP

SEC Proposes Permanent Solution to Loan Rule Issues for Investment Companies

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Summary - On May 2, 2018, the Securities and Exchange Commission (“SEC”) proposed amendments to part of the SEC’s auditor independence rules, Rule 2-01(c)(1)(ii)(A) of Regulation S-X, otherwise known as the “Loan Rule”...more

Dechert LLP

SEC Proposes Amendments to Auditor Independence Rule to Address the “Loan Provision”

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The U.S. Securities and Exchange Commission (SEC) voted unanimously on May 2, 2018 to propose amendments to Rule 2-01(c)(1)(ii)(A) under Regulation S-X – the so-called “Loan Provision” (Proposal). Generally, the Loan...more

Brooks Pierce

Audit Partner Violates Independence Rule in Way He Probably Never Expected

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I’ve been thinking about these auditor independence cases since the administrative orders were issued a few weeks ago. They’re very interesting to me for a couple of reasons, but let’s start with the rules...more

Broker-Dealer Compliance + Regulation

SEC Staff Throws Funds a Lifeline on Auditor Independence (For Now)

The SEC’s Division of Investment Management provided temporary relief from the headache created for funds when the failure to meet the provisions of the so-called “loan rule” may disqualify fund auditors from being...more

Burr & Forman

SEC Sanctions 8 Auditors in “Broken Gate” Enforcement Sweep

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The SEC this week issued cease-and-desist orders against eight auditors, fining them $140,000 collectively, for violating auditor independence rules by preparing the very broker-dealer financials they were to audit....more

Eversheds Sutherland (US) LLP

Legal Alert: SEC and PCAOB Address Independence Requirements in Audits Related to Broker-Dealers’ Financial Statements

Confirming that auditor independence continues to be a regulatory priority, the Securities and Exchange Commission (SEC or Commission) and the Public Company Accounting Oversight Board (PCAOB) issued orders on December 8,...more

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