|
 |
AICPA: Tell Investors Pro Formas "Unaudited" NEW YORK, Dec. 23, 2002 To eliminate investor confusion, the American Institute of CPAs said the Securities and Exchange Commission should make it clear in its proposed rule Regulation G that auditors are not necessarily responsible for the accuracy of pro forma data. In its comments to the SEC, the AICPA said Regulation G -- the SEC's proposed rule regarding conditions for use of non-GAAP financial measures -- should "explicitly" state that "the company's independent accountant need not audit non-GAAP data". The AICPA expressed concern that "investors are under the impression that the auditor was associated with the pro forma data and has approved the pro forma adjustments as 'proper.'" To remedy possible confusion, the AICPA proposed that issuers of financial statements be required to label the pro forma data as "unaudited" and to disclose that such information had not been reviewed or examined by their auditors. 2002 SmartPros Ltd. All rights reserved. |
|
|
|||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
