CFA Urges SEC to Withdraw Anti-Investor Proposal to Reduce ICFR Audits
CFA submitted a comment voicing strong opposition to the Securities and Exchange Commission’s proposal to exempt a broader swath of public companies from the requirement to include an independent auditor assessment of internal controls over financial reporting (ICFR) as part of the financial statement audit. This was a key reform adopted in response to the wave of corporate frauds that decimated the public markets in the early 2000s. The proposal would roll back those reforms for several hundred large, but “low revenue” public companies without providing any credible support for the claim that doing so would promote capital formation and despite compelling evidence that taking this action could undermine the quality and reliability of the affected companies’ financial reporting. CFA therefore urged the SEC to withdraw the proposal.
