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INCREASING ATTENTION ON FRAUD

By Stephen Barlas
June 30, 2015
1 comments
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President Obama’s FY2016 proposed budget for the Securities & Exchange Commission (SEC) would allow the agency to hire 93 additional staffers in its Enforcement division. According to Andrew Ceresney, director of the SEC’s Division of Enforcement, the Commission is particularly interested in rooting out accounting fraud. At hearings in front of the House Financial Services Committee, Ceresney said the Financial Reporting and Audit Task Force, which was created in 2013, “is one of several initiatives across the Division designed to increase focus on financial reporting and auditing issues…These efforts are starting to produce results, as FY 2014 saw a 40% increase in financial reporting and auditing filed actions and investigations.”

 

In March, Cornerstone Research said 69 new class action securities cases with accounting allegations were filed in 2014, up from 47 in 2013. Elaine Harwood, head of Cornerstone’s accounting practice, said the accounting class action increase “appears to be, at least in part, a result of the SEC’s heightened focus on accounting-related fraud.”

 

Stephen Barlas has covered Washington, D.C., for trade and professional magazines since 1981 and since 1984 for Strategic Finance and its predecessor Management Accounting. You can reach him at sbarlas@verizon.net.
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1 comment.
    kamran manzoor October 22, 2015 AT 1:12 am

    good

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