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SEC launches new enforcement unit aimed at accounting fraud
['Alexei Alexis']
CFO Dive - Latest News
Dive Brief:The Securities and Exchange Commission is establishing a new enforcement unit focused on pursuing financial reporting and accounting fraud cases, the agency said Wednesday.
The taskforce Woodcock previously chaired led to an increase in financial reporting cases that was small by historical enforcement standards, they said.
“Dedicating resources and expertise to pursue accounting and financial reporting fraud cases is very much in line with back-to-basics enforcement.”
In light of the new anti-fraud unit, companies should pay special attention to internal reports and complaints about conduct in financial reporting and accounting, Choi said.
“Many SEC enforcement actions and investigations come out of whistleblower reports and the numbers this year are trending up,” she said.