SEC staff completes processing of CEO, CFO statements - SEC News - Securities and Exchange Commission; financial statement certification - Brief Article

California CPA, Oct, 2002

The SEC has completed processing the sworn statements by the CEOs and CFOs of the largest U.S.-based companies and found that the overwhelming majority certified the material accuracy and completeness of their companies' prior disclosure reports.

The SEC concluded that CEOs and CFOs of 16--or 2.3 percent--of the 947 companies whose reports were due Aug. 14 did not certify to the accuracy and completeness of their companies' reports and instead filed explanations or other forms of certification.

"The certification procedures for America's largest companies have had the desired effect," reports SEC Chairman Harvey Pitt. "We wanted assurances that senior corporate executives are taking personal responsibility for their companies' filings and personally stand behind the accuracy of their companies' reported numbers ... we want to know in a timely manner where disclosure needed correction and improvement. These objectives were achieved. This has been an important and worthwhile exercise."

Only one company, IT Group Inc., which is in bankruptcy liquidation, failed to file the certification by the Aug. 14 deadline or request an extension.