SEC Widens Accounting Probe

It is believed that, during the first two months of this year, the SEC opened files on a record 49 financial reporting cases, compared with 18 in January and February 2001.

This time out, the SEC appears to be focussing more on the larger US corporates. Charles Niemeier, head of accounting in the SEC's enforcement division is quoted as saying that 'we are investigating more Fortune 500 companies than we ever have.'

The move to probe more deeply into the affairs of major US companies has been criticized by some who regard it as a kind of regulatory witch-hunt.

Neimeier has countered these views by confirming that the SEC needs not only to address past problem areas, but will also need to anticipate future actions which will knowingly mislead investors.