Congress asks for probe of SEC processes

One beneficiary of the Sarbanes-Oxley act was the Securities and Exchange Commission, which received a significant boost in funds for its enforcement and examinations divisions. Now, congress has asked the GAO to study the SEC in an effort to determine if these funds are being effectively managed. The request bubbled forth from the Senate Finance Committee's examination of the SEC handling of the probe of Pequot Capital, a hedge fund. This is not necessarily novel. The GAO has frequently issued comments and guidance on SEC practices. This year, the GAO issued 14 recommendations to improve the internal controls of the commission (ironic!), specifically addressing accounting and financial reporting procedures. It also suggested the SEC could better recruit staff. It's unclear how this report will take shape, but it looms as yet one more challenge for SEC Chairman Chris Cox.

For more:
- read this WebCPA article