Does State Sponsor of Terrorism Disclosure Limit SEC Financial Reporting Oversight?

The Securities and Exchange Commission (SEC) regularly reviews financial filings to ensure compliance with accounting standards and other disclosure requirements.  The SEC review team analyzes firm’s financial filings and asks questions (in a comment letter) about perceived deficiencies.  A comment letter may request clarification regarding an accounting or reporting issue and may ask a firm to revise or update its financial reports.  According to the SEC, this comment process “deters fraud and facilitates investor access to information.”

Comment letters are publicly available on EDGAR, and both accounting and law firms monitor comment letters to ascertain where the SEC is directing … Read more