SEC improves internal controls, but can enhance efficiency

The U.S. Government Accountability Office found 52 of the 58 tested internal supervisory controls at the Securities and Exchange Commission operated as intended in fiscal year 2015, according to an Oct. 6 report.

Of the six controls identified as deficient, none appeared likely to prevent the divisions and offices affected from achieving their objectives, and SEC officials told the GAO have addressed most of the issues. 

{mosads}The GAO found, “variations among divisions and offices in the design of controls addressing similar risks and objectives.” The discrepancies highlight opportunities for the SEC to improve its efficiency through advanced information sharing, the GAO stated.

Since its first review in 2013, the GAO found the divisions and offices have advanced the framework used to assess internal controls, “including developing electronic workflow tracking systems and creating a permanent standards monitoring office,” the GAO report stated.

The GAO recommended the SEC formalize a formal body to facilitate coordinated compliance with section 961 of Dodd-Frank. 

Section 961 of the Dodd-Frank Act mandates the SEC’s Divisions of Corporation Finance and Enforcement, and Office of Compliance Inspections, Examinations and Credit Ratings, conduct annual reviews of the internal supervisory controls and report them to Congress.

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