SEC Releases Scaled-Back Final Rules on Climate Disclosures

The Securities and Exchange Commission voted to finalize its rules on climate-change disclosures titled,  “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” In an about face that the SEC began signaling last month, the Commission cut key provisions from the proposal, including a requirement to disclose Scope 3 emissions, […]

IIA Supports SEC Proposal on New Climate Disclosure Rules

The Institute of Internal Auditors has announced that it is supporting new rules proposed by the Securities and Exchange Commission that would require public companies to say much more about their environmental, social, and governance initiatives. “The Institute of Internal Auditors applauds this week’s release by the U.S. Securities and […]

Only Half of Companies with ESG Disclosures Receive Internal Audit Function Assurance

A new survey found that two-thirds of organizations have an ESG program in place and another 24 percent have plans to implement one. However, only half (51 percent) of organizations that report on ESG obtain some level of assurance from their internal audit functions. So while companies may be listening […]

New Report Provides Guidance on Internal Audit’s Role in ESG Disclosures

Investors and regulators are pushing for more comprehensive and uniform reporting on environmental, social, and governance (ESG) efforts. Some organizations are even tying incentive compensation metrics to ESG goals. In March, the Securities and Exchange Commission said it would be looking more closely at ESG disclosures and also announced the […]

IIA Calls for More Uniform Disclosure on Climate Change

Supporting greater attention on the important issue of sustainability, The Institute of Internal Auditors (IIA) delivered a message to U.S. Securities and Exchange Commission Chair Gary Gensler last week, encouraging uniform climate disclosure by corporations and recognition of the role internal audit plays in providing assurance around complete, accurate, and […]

SEC Charges Under Armour with Disclosure Failures

The Securities and Exchange Commission has charged sports apparel manufacturer Under Armour Inc. with misleading investors as to the bases of its revenue growth and failing to disclose known uncertainties concerning its future revenue prospects. Under Armour has agreed to pay $9 million to settle the action. According to the […]

GE to Pay $200 Million for Disclosure Violations

General Electric Co. has struck a deal with the Securities and Exchange Commission to pay a $200 million penalty to settle charges for disclosure failures in its power and insurance businesses in financial reports filed in 2017 and 2018. According to the SEC’s order, GE misled investors by describing its […]

SEC Bites Cheesecake Factory for Misleading COVID-19 Disclosures

The Securities and Exchange Commission has settled charges against The Cheesecake Factory for making misleading disclosures about the impact of the COVID-19 pandemic on its business operations and financial condition. The action is the SEC’s first charging a public company for misleading investors about the financial effects of the pandemic. […]

SEC Plans to Modernize, Simplify ‘MD&A’ and Other Disclosures

The Securities and Exchange Commission voted this week to adopt amendments that will modernize, simplify, and enhance certain financial disclosures, including the Management’s Discussion and Analysis requirement. The changes are intended to enhance the focus of financial disclosures on material information for the benefit of investors, while simplifying compliance efforts […]