The Securities and Exchange Commission's Division of Corporation Finance is constantly on the lookout for financial filings that aren't up to snuff. Financial statements with missing or unclear disclosures, insufficient detail, or conflicting data could attract the staff's attention. In certain circumstances, the division will launch a review of a company's filings. But just what triggers a review isn't always clear.
Former SEC employees who were once involved in the process of initiating such reviews are shedding some light on the filing review process. They say numerous red flags—some big and some small—can attract the SEC's attention and set off ...