Audit committee members who fail to reasonably carry out their responsibilities, and auditors who unreasonably fail to comply with relevant auditing standards in their audit work, will find themselves in the crosshairs of the Securities and Exchange Commission’s Division of Enforcement.
That was the warning issued by SEC Enforcement Director Andrew Ceresney during a keynote speech last month at Directors Forum 2016. “In the financial reporting area, like in many others, gatekeepers are critical to helping ensure that issuers make timely, comprehensive, and accurate disclosure,” Ceresney said. “Audit committee members and external auditors, in particular, are among the most important gatekeepers in this process, and each has a responsibility to foster high-quality, reliable financial reporting.”
