• Register
Return to: Home > News > Regulation > SEC launches initiatives to combat accounting fraud

SEC launches initiatives to combat accounting fraud

The US Securities and Exchange Commission (SEC) has launched three initiatives to combat financial reporting, microcap fraud and enhance its risk analysis using improved analytical technology.

One of the new initiatives will look to enhance and improve the role of the Financial Reporting and Audit Task Force in identifying securities-law violations relating to the preparation of financial statements, issuer reporting and disclosure and audit failures.

The SEC is also setting up a Microcap Fraud Task to target abusive trading and fraudulent conduct in securities issued by microcap companies, particularly those that do not regularly publicly report their financial results.

The Microcap Task Force's aim is to develop and implement long-term strategies for detecting and combating fraud in the microcap market.

The SEC said the new task force will particularly target "gatekeepers," such as attorneys, auditors, broker-dealers, and transfer agents, and other significant participants, such as stock promoters and purveyors of shell companies.

The third new initiative requires the Centre for Risk and Quantitative Analytics to use quantitative data and analysis to profile high-risk behaviours and transactions and support initiatives to detect misconduct, increasing the enforcement division's ability to investigate and prevent conduct that harms investors.

Related link

Securities and Exchange Commission

Top Content

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    FASB: a quest for simpler standards

    FASB chair Russell Golden addressed the IMA 2019 Annual Conference and Expo at the Sheraton San Diego Hotel and Marina, California, on 18 June. IMA immediate former chair-emeritus Alex Eng acted as moderator. Joe Pickard reports.

    read more

    The future of audit, and how to get there

    Two recent reports peer into the future of the audit profession. One analyses what an audit should offer, while the other looks at how the audit process will be carried out. Robin Amlôt takes a closer look at both.

    read more

    EFAA elects new president, focuses on digital future

    EFAA’s new president, Salvador Marin, outlined his key priorities for the next two years at the organisation’s 2019 annual general meeting, while outgoing president Bodo Richardt offered advice. Robin Amlôt reports.

    read more


    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.