SEC Solicits Public Comment on Audit Committee Disclosures

The SEC voted to publish a concept release requesting public comment on current audit committee disclosure requirements.

According to the concept release, the SEC is interested in receiving comments on information about the relationship between audit committees and auditors, and whether improvements can be made to enhance the information provided to investors regarding an audit committee's responsibilities and activities.

Specifically, the SEC is inviting comments on whether its disclosure requirements should be refined to provide more insight into the information used by an audit committee and the factors it considers in overseeing the independent auditor. The required disclosure could include information detailing the considerations related to the process for appointing or retaining the auditor and the qualifications of the auditor and certain members of the engagement team.

See: SEC Concept Release.