SEC considers updating audit committee disclosures

The commission is seeking public comment on information provided to investors.

The SEC is evaluating whether audit committee disclosure requirements provide investors with the information they are seeking.

The commission voted to publish a concept release that seeks public comment about the relationship between the audit committee and the independent auditor. The release asks whether the information provided to investors about the audit committee's responsibilities and activities can be enhanced.

The concept release also requests comments on whether the SEC's disclosure requirements should be changed to provide more insight into the information the audit committee considered in overseeing the independent auditor.

This would include considerations related to the process for appointing or retaining the auditor, and the qualifications of the auditor and certain members of the engagement team.

"Effective audit committee oversight is essential to investor protection and the functioning of our capital markets," SEC Chair Mary Jo White said in a news release. "The way audit committees exercise their oversight of independent auditors has evolved, and it is important to evaluate whether investors have the information they need to make informed decisions."

Comments will be accepted for 60 days following publication of the concept release in the Federal Register.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.