Photo: Ali West via Flickr
If one institution needs to keep its books in order, it’s the one that’s making sure every financial institution is doing just that.But it turns out the S.E.C’s accouting is a mess — its “auditor had pointed out significant weaknesses in its accounting for seven years running,” according to Dealbook.
The Government Accountability Office (GAO) has faulted the SEC’s reporting almost every year since it began producing audited statements back in 2004.
Last year in November, the GAO said the SEC’s books “were in such disarray that it had failed at some of the agency’s most fundamental tasks,” including tracking income from fines, filing fees and the return of illegal profits.
The final damning conclusion of the SEC auditor was:
A reasonable possibility exists that a material misstatement of S.E.C.’s financial statements would not be prevented, or detected and corrected on a timely basis.
Apparently the mistakes were corrected before its latest financial statements were finalised.