"As required by the Sarbanes-Oxley Act of 2002, the [Corporate Finance] Division undertakes some level of review of each reporting company at least once every three years and reviews a significant number of companies more frequently. ... In deciding how to allocate staff resources among filings, the Division undertakes a substantive evaluation of each company's disclosure in what it calls a preliminary review. To preserve the integrity of the selective review process, the Division does not publicly disclose its preliminary review criteria", my emphasis, page 11 of the SEC Staff Review of Common Financial Reporting Issues Facing Smaller Issuers, December 2009, link: http://www.sec.gov/news/speech/2009/slides1209wc.pdf.
Quoted without comment.
2 comments:
"...To preserve the integrity of the selective review process, the Division does not publicly disclose its preliminary review criteria..."
Errr...dark hocus pocus.
You want people to follow the rules then state the rules. This is a license to witch hunt.
Anonymous:
Even more important, it enables the SEC not to be forced to explain the cases it ignores.
IA
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