Call it the other whistleblowing provision of the corporate-governance world: Section 10A of the Securities Exchange Act.
While Sarbanes-Oxley might hog the spotlight when it comes to anti-fraud legislation, Section 10A has evolved into a quiet but powerful force to root out corporate misdeeds. Created as part of the Securities Litigation Reform Act of 1995, Section 10A essentially requires an auditor to take certain actions when it discovers that an illegal act has occurred—regardless of whether the act is material to the company’s financial statement.
