Congressional proposal would make auditors SEC investigators

Article Abstract:

The proposed Financial Fraud Detection and Disclosure Act would force certified public accountants (CPAs) to report faults in management control systems to corporate audit committees and the Securities and Exchange Commission (SEC). The National Association of Accountants and the American Institute of Certified Public Accountants oppose the proposed law, since it would make auditors an investigative branch of the government, would interfere with a system that already works, and would create negative relationships between CPAs and their clients. Suggested modifications to the proposal include rulings on how serious a transgression must be before auditors report it and a requirement that auditors bring their findings to the attention of corporate management first. The SEC is against such modifications.

Services, Accounting, Auditing, Accountants, Disclosure statements (Accounting)

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Insider trading: the SEC knows it when it sees it

Article Abstract:

Most insider trading cases uncovered by the Securities and Exchange Commission (SEC) seem to revolve around the concept of trading in securities based on knowledge of upcoming merger activity that is not available to the general public. Still, definitions of 'insider trading' are hard to come by. 'Insiders' are officers, directors and shareholders owning ten percent or more of the company's stock, but the SEC is vague as to who is and is not an officer. Insiders who purchase or sell stock are required to report such transactions to the SEC no later than the tenth day of the month following the month of the transaction.

Regulation misc. commercial sectors, United States, Insider trading in securities, Insider trading (Securities), Securities law

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Last minute rush slams door on insured debt exemption proposal

Article Abstract:

The proposed law to exempt corporate debt issues from registering with the Securities and Exchange Commission (SEC) has been shelved until the next Congress. However, as a compromise, pending passage of the legislation, the SEC has extended filing exemptions to debt issues that are insured and have received a triple-A rating from at least two rating services. Although the Senate has approved this compromise bill, the House has failed to approve it. Reasons for the House's delay of the bill are discussed.

Evaluation, Finance, National debt, Public debts, Debt financing (Corporations), Debt financing

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