SEC Establishes New Financial Reporting and Accounting Fraud Unit

The SEC has launched a new Financial Reporting and Accounting Unit within its Enforcement Division, signaling a renewed focus on combating financial reporting fraud, accounting misconduct, and auditor malfeasance. Internal audit and assurance professionals should be aware of this development as it may lead to increased scrutiny and enforcement actions related to financial reporting accuracy and internal controls. This unit's creation underscores the importance of robust internal audit functions in preventing and detecting financial irregularities.