Regulatory Alerts2021-12-09
Revised Rules and Regulations on the Implementation of the SEC Oversight Assurance Review (SOAR) Inspection Program
The Securities and Exchange Commission issued Memorandum Circular No. 12 Series of 2021 to establish revised rules for the SOAR Inspection Program, which conducts on-site reviews of accredited audit firms to ensure high-quality financial reporting for publicly-listed companies. The regulations define a risk-based selection process, specify inspection frequencies based on market capitalization, and outline detailed procedures for firm-level and engagement-level assessments under international quality management standards. Furthermore, the document mandates strict timelines for reporting findings, firm remediation plans, and appeals, while establishing protocols for confidential consultations and sanctions to protect investor interests.
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