Articles

SEC Ups the Ante Against Fraud:

In Accounting & Finances, Business on September 11, 2013 by Sufen Wang Tagged: , , , , ,

MH900412564Announces New Task Forces

Things  just got real over at the Securities and Exchange Commission. The SEC  announced the formation of not one, but two task forces, along with a  Center for Analytics. The mission of these initiatives: to “build on the Division of Enforcement’s ongoing efforts to concentrate resources on  high-risk areas of the market and bring cutting-edge technology and  analytical capacity to bear in its investigations.” Great!

Now  what? That all sounds nice and motivated, but what does it actually  mean? Well one task force, the Financial Reporting and Audit Task Force, will focus on fraud detection, fraud detection, and fraud detection.  The mission here is, if you didn’t get it, to crack down on fraud with  real world results. That means increased prosecution of violations  involving false financial statements and disclosures. Bad guys better  beware because although this Task Force doesn’t have a Batmobile,  they’ll still be using fancy technology-based tools such as the  Accounting Quality Model.

MH910217210Next up for the Good Guys and Gals  in the battle against financial evil is the Microcap Fraud Task Force.  No, this is not a tiny task force, but they do have some big shoes to  fill, building on the extensive work of the Microcap Fraud Working Group created in 2010. This Task Force will be looking into fraud in the  issuance, marketing, and trading of microcap securities. Because these  abuses usually involve the same old violators and big bad organized  syndicates, the Task Force will be targeting “gatekeepers” and their  main stomping grounds – websites and social media.

Every  superhero needs a sidekick, so back at the base the Center for Risk and  Quantitative Analytics (CRQA) will support and coordinate the Division’s risk identification, risk assessment, and data analytic activities.  This will be the place for data on fraud patterns and characteristics,  and the CRQA will serve as a central point of contact for risk-based  initiatives nationwide. The Securities and Exchange Commission is  working hard to make the financial industry a more secure arena, so  let’s appreciate these actions being taken to combat fraud.

MH900355945Sufen Wang, M.S. Accountancy
Wang Solutions, Long Beach, CA (562) 856-0793
Editor: Hannah Huff, M.F.A. Creative Writing: Poetry, (626) 806-5805

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