SEC Issues Concept Release on Possible Revisions to Audit Committee Disclosures | Practical Law

SEC Issues Concept Release on Possible Revisions to Audit Committee Disclosures | Practical Law

The SEC issued a concept release seeking public comment on current audit committee disclosure requirements, focusing on the committee's oversight of the independent auditors.

SEC Issues Concept Release on Possible Revisions to Audit Committee Disclosures

Practical Law Legal Update w-000-4519 (Approx. 3 pages)

SEC Issues Concept Release on Possible Revisions to Audit Committee Disclosures

by Practical Law Corporate & Securities
Published on 01 Jul 2015 • USA (National/Federal)
The SEC issued a concept release seeking public comment on current audit committee disclosure requirements, focusing on the committee's oversight of the independent auditors.
On July 1, 2015, the SEC issued a concept release requesting comment on its existing audit committee disclosure requirements, focusing on disclosure of the committee's oversight of the company's independent auditors. The SEC is interested in collecting information about:
  • The relationship between the audit committee and the independent auditor.
  • Whether improvements can be made to enhance the information provided to investors about the responsibilities and activities of the audit committee.
In addition to seeking commentators' views on existing audit committee disclosures, the concept release also solicits comment on whether the SEC's disclosure requirements should be refined to provide more insight into the information that audit committees use, and the factors they consider, in overseeing the company's independent auditor. Among other factors, this includes considerations relating to:
  • Communications between the audit committee and the independent auditor.
  • The process for appointing or retaining the auditor.
  • The qualifications of the auditor and certain members of the engagement team.
The SEC is accepting comments until September 8, 2015.
For information about existing audit committee disclosure requirements, see Practice Notes, Corporate Governance Standards: Audit Committee and Proxy Statements: Independent Auditor Information. For a form of audit committee charter for a public company, see Standard Document, Audit Committee Charter.