Do SEC Comment Letters Provide Useful Information?

To ensure compliance with disclosure and accounting requirements, the SEC periodically reviews reporting companies’ filings, including the Form 10-K.  While the SEC is required to review the filings of every reporting company at least once every three years, it may (and does) choose to review some companies more frequently.  For example, according to the SEC’s annual reports, the SEC has reviewed an increasing percentage of companies each year since 2006, with 52 percent of registered companies being reviewed in fiscal year 2013.

As described further on the SEC’s “Filing Review Process” website, the review does not guarantee whether … Read more