SEC Renews Its Enforcement Focus - With Vigor - On Accounting Issues

In the wake of Mary Jo White's appointment as the new Chair of the Securities and Exchange Commission, the SEC's Division of Enforcement has sought to aggressively investigate alleged accounting violations.

In July 2013, the SEC announced the creation of a Financial Reporting and Audit Task Force, which is tasked with the dual mandate of improving detection and increasing prosecution of accounting fraud. The SEC's press release stated that the principal goals of the task force are "fraud detection and increased prosecution of violations involving false or misleading financial statements and disclosures," with a focus on "identifying and exploring areas susceptible to fraudulent financial reporting . . . and use of technology-based tools." Chair White emphasized the significance of this initiative as part of the SEC's goal of "covering the whole market."