SEC's Accounting Unit Seen as Core Fraud Enforcement Engine

Securities Enforcement Defense Team Chair Jessica Magee was quoted in a Bloomberg Law article examining the U.S. Securities and Exchange Commission's (SEC) newly established accounting enforcement unit and the role it is expected to play in advancing the agency's fraud enforcement efforts. The article explored how the specialized team aligns with SEC Chairman Paul Atkins' enforcement priorities, and practitioners interviewed by Bloomberg Law shared they anticipate the initiative will lead to increased scrutiny of public company financial reporting, auditing practices and accounting-related misconduct.

"The commission's statements to date about auditing cases spotlight integrity, independence and actual misconduct, which pair well with Chairman Atkins' 'back to basics' focus on fraud over so-called technical violations," Jessica said, adding that accounting firms in particular can expect more inquiries in the future.

READ: SEC's Accounting Unit Seen as Core Fraud Enforcement Engine (Subscription required)