Summary

GAO reviewed the Securities and Exchange Commissions's (Commission) new rule on amendments to rules regarding management's report on internal controls over financial reporting. GAO found that (1) the final rule clarifies that an internal control over financial reporting (ICFR) that complies with the interpretive guidance referenced therein is one way to satisfy the requirement that companies include in their annual reports filed under sections 13(1) or 15(d) of the Securities Exchange Act of 1934 and the final rule also defines the term material weakness and revises the requirements regarding the auditor's attestation reports on the effectiveness of ICFR; and (2) the Commission complied with applicable requirements in promulgating the rule.