The Securities and Exchange Commission has passed a new rule requiring all public companies to disclose remarkds and inquiries by independent auditors starting in January 2018. The Wall Street Journal reports that the SEC’s new rule has been in motion for a few years now, the real surprise is how quickly it will impact companies across the United States. The publication says, this move will take effect immediately and will allow auditors to say more about their reviews of a company’s finances. This new information will be included as an expanded audit report and will include a letter on whether or not the auditor agrees that the company has accurately presented its financial statements. Auditors and companies alike will have to get up to speed fairly quickly, here’s a look at a timeline:
- 2018: Full disclosure of about the auditor’s association with a company required early next year.
- 2019: Starting in mid-2019 the “critical audit matters” must be included for large companies.