The SEC Meets The Web: "We Likey!"
On July 30, 2008, the US Securities and Exchange Commission (SEC) published its interpretive release explaining how companies can use their websites and blogs to meet their requirements for public disclosure under Regulation FD.
“…I don’t expect a flood of companies ditching their wire services overnight and cranking out new investor relations blogs. It will take time for companies and their legal counsel to gain confidence that they can use their websites rather than the traditional methods without exposing executives to potential SEC action under Reg. FD…“
Imagine this: the entire value of traditional audit comes under question. What replaces it?
A carefully orchestrated stream of transparent information that can be parsed through links. There will, in other words, be no place to hide.In December 1999, the Securities and Exchange Commission (SEC) adopted a rule that requires a company’s independent auditor to review the company’s interim financial information prior to the company filing its quarterly report on Form 10-Q or Form 10-QSB. In the SEC staff’s view, this rule makes it a clear violation of the securities laws for a company to file such a quarterly report without having its auditor perform the review in advance of the filing. The rule was effective for all fiscal quarters ending on or after March 15, 2000…
The professional standards and guidance for conducting interim reviews are set forth in Statement on Auditing Standards No. 71, Interim Financial Information (SAS 71)with only minor modifications for conforming changes by the PCAOB (SAS 100 superceded SAS 71 in 2002 with SOx). The objective of a review of interim financial information is to provide the auditor with a basis for reporting whether material modifications should be made for that information to conform with generally accepted accounting principles…
In practice, a review report typically is not issued on interim financial information, although SAS No. 71 provides that a report may be issued. The SEC does not require, and most companies do not request, the issuance of a review report. However, the SEC does require that if a company includes a representation in their filing that the auditor has performed a timely review, the auditor’s report on the review must accompany the interim financial information…
One of the primary reasons the SEC has mandated the above requirement is to minimize large year-end adjustments to quarterly financial statements that historically have been uncovered in the annual audit process…
Broad, Simultaneous and Real-Time Distribution is Key to Ensuring Fair and Equal Access for All Market Participants
NEW YORK–(BUSINESS WIRE)–Business Wire believes that the SEC’s Interpretive Guidance release on web-based disclosure clearly falls short of the investor relations industry’s best practices standards, and that simultaneous, real-time distribution of material news to all market participants is the key to ensuring the “level playing field” that is the intent and spirit of Regulation Fair Disclosure…
I agree with you about these. Well someday Ill create a blog to compete you! lolz.