A coalition of governance and investor groups has asked the Securities and Exchange Commission to reject an NYSE internal audit proposal affecting newly listed companies.
The Institute of Internal Auditors said in a summary of its SEC comment submission that the exchange’s proposal would extend the period for establishing an internal-audit function to five years from the current one-year transition.
NYSE Internal Audit Proposal Draws Investor-Protection Objections
The coalition includes Better Markets, the National Whistleblower Center, Public Citizen, the Association of Certified Fraud Examiners and other professional or advocacy organizations. The release said more than 80 practitioners, executives and investors also submitted comments.
Opponents argue that the longer transition could leave newly public companies without both an internal-audit function and independent auditor attestation over internal controls during their early years as listed businesses. That is the coalition’s policy assessment, not a finding by the SEC.
The comment process does not determine the outcome. The SEC may approve, reject or seek changes to the exchange proposal after considering the formal record. The supplied material did not indicate that the Commission had reached a final decision.
