AUDIT COMMITTEE AND AUDITOR OVERSIGHT UPDATE

During fiscal year 2025, the Securities and Exchange Commission brought 30 percent fewer cases against public companies and their subsidiaries than in FY 2024, and 93 percent of the 2025 cases were brought before January 25, 2025 – the day on which Biden Administration SEC Chair Gensler resigned.  Those findings are reported in SEC Enforcement Activity: Public Companies and Subsidiaries—Fiscal Year 2025 Update , the annual report of Cornerstone Research and the New York Unive

The Securities and Exchange Commission has apparently thrown in the towel in its controversial campaign to use the internal control requirements of the Securities Exchange Act as a tool to sanction public companies for cybersecurity weaknesses.   In 2023, the SEC brought an enforcement action against SolarWinds Corporation and its Chief Information Security Officer, charging the company with, among other things, violating the requirement in Section 13(b)(2) of the Exchange Ac