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ARTICLE · 07 JANUARY 2020

SEC Shares Best Practices With Audit Committees

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The Securities and Exchange Commission recently released a Statement highlighting eight areas that audit committees should focus on this reporting season.

United StatesAccounting and Audit
Daniel Gallagher
Daniel Gallagher
William McLucas
William McLucas
Lucas Moskowitz
Lucas Moskowitz
Jonathan Wolfman
Jonathan Wolfman
Alan Wilson
Alan Wilson
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The Securities and Exchange Commission recently released a Statement highlighting eight areas that audit committees should focus on this reporting season.

Penned by SEC Chairman Jay Clayton, Division of Corporation Finance Director William Hinman and Chief Accountant Sagar Teotia, the succinct Statement acknowledges the "vital role" that audit committees play in the financial reporting system and emphasizes that "[e]ffective oversight by strong, active, knowledgeable and independent audit committees significantly furthers the collective goal of providing high-quality, reliable financial information to investors and our markets."

The Statement specifically encourages audit committees to:

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