The Securities and Exchange Commission is taking a keen interest in internal control effectiveness letters, improper use of non-GAAP measures, holes in MD&A, and the ways in which revenue is allocated from complex contracts.
Those are among 10 hot-button issues that prompted SEC remarks on corporate periodic filings, according to a recent analysis of SEC comments from an eight-month period of 2006. The research arm of Financial Executives International zeroed in on 513 comments arising from quarterly and year-end filings to get a sense for where SEC’s gaze most often fell.
