GAO Report: SEC Should Consider Requiring Companies to Disclose Auditor Attestation

Dodd-Frank mandated that the GAO examine the impact of the permanent exemption on the quality of financial reporting by small public companies and on investors. According to the GAO, a majority of empirical studies suggests that compliance with the auditor attestation requirement has a positive impact on investor confidence in the quality of financial reports. Accordingly, the GAO recommends that the SEC consider requiring public companies to explicitly disclose whether the relevant company has obtained an auditor attestation of its internal controls. The SEC responded that investors could determine attestation status from available information. The GAO encourages further consideration of its recommendation.

See: Full GAO report.