GAO Cites Deficiencies in Roughly Half Of SEC Supervisory Controls Tested

While three divisions of the Securities and Exchange Commission have established a generally effective framework for internal supervisory controls, roughly half of the controls tested revealed deficiencies, according to a Government Accountability Office report released April 18.

Section 961 of the Dodd-Frank Wall Street Reform and Consumer Protection Act directed the SEC to conduct an annual review of internal supervisory controls for the Divisions of Corporation Finance and Enforcement and the Office of Compliance Inspections and Examinations. The law also requires GAO to audit those controls.

The requirements stemmed from some lawmakers’ concern over the agency’s perceived missteps during the ...