SEC Urges Financial Teams to Ensure Controls Fit for Hybrid Work

SEC officials want companies to give their pandemic-era internal controls a fresh look to ensure they are still effective as financial teams gradually return to the office.

Failure to design internal controls for both disclosures and financial reporting is a problem not just for preparers, but also for investors and the enforcement staff at the Securities and Exchange Commission, Gurbir Grewal, the commission’s enforcement director, told an American Institute of CPAs conference in Washington on Wednesday.

• “Internal accounting controls are critical to those companies’ business, but it’s also critical to investors getting truthful information about a company’s performance,” ...