The SEC charged a motor company for misleading investors about the company's plans to develop the first full-size electric pickup truck and separately charged the company's accounting firm for violating auditor independence rules.
News & Insights
SEC Chief Accountant Paul Munter reminded issuers, preparers and auditors of their responsibilities to provide transparent, high-quality cash flow information for the protection of investors.
The SEC charged that an audit firm failed to maintain independence from clients while engaging in audits, exams and reviews.
SEC Chief Accountant Paul Munter reminded management and auditors of their obligations to take a "holistic approach" when evaluating the effectiveness of issuers' internal controls over financial reporting.
House Financial Services Committee Chair Patrick McHenry and Capital Markets Subcommittee Chair Ann Wagner expressed opposition to a PCAOB proposal to require auditors, as part of their assignments, to identify material legal and regulatory compliance risks in the clients’ businesses.