Disclosure Filings Examination and Accounting Reports (PDF), Audit No . 378

DISCLOSURE FILINGS EXAMINATION AND ACCOUNTING REPORTS EXECUTIVE SUMMARY Our audit of the Division of Corporation Finance’s examination and accounting report process found that the process was generally achieving its objectives (e.g., documenting the scope of the filing review, providing the staff with timely and substantive supervisory review comments). We are making several recommendations to improve the process, including: reminding Division staff and supervisors to upload reports to the filing folder in the Commission’s Electronic Data Gathering Analysis and Retrieval system (EDGAR), clarifying the EDGAR uploading guidance, and safeguarding sensitive information. During the audit, we also discussed other issues with senior management. Commission management generally concurred with our recommendations. SCOPE AND OBJECTIVES Our audit objective was to evaluate whether the Division of Corporation Finance's examination and accounting report process was achieving its objectives. During the audit, we interviewed Division attorneys and accountants, and analyzed judgment samples of Examination and Accounting reports, among other procedures. The audit was performed from September 2003 to May 2004 in accordance with generally accepted government auditing standards. BACKGROUND The Division of Corporation Finance has approximately 415 staff (mainly attorneys and accountants) of which approximately 80% are assigned to one of 11 industry groups. ...