Listed companies and those preparing to list. Accounting concerns must reach the audit committee, confidentially and anonymously.
Revenue timing, reserves, or estimates that feel wrong.
Overrides, missing approvals, or pressure on auditors.
Trading on information the public does not have.
Pressure on people who raised concerns.
Audit committees must set procedures to receive and handle complaints about accounting, internal controls, and auditing, including confidential, anonymous submissions by employees.
Protect your people. The anti-retaliation provision prohibits covered companies, their officers, contractors, and others from retaliating against employees who report certain fraud or securities-law violations, internally or externally.
No one may stop a person from talking directly to the SEC, including through confidentiality agreements.
General information, not legal advice. Have counsel confirm which rules apply to your organization.
Route accounting concerns to whoever you designate, including your audit committee chair.
Executives named in a report cannot see it.
Every view and action is logged for auditors.
Set up the channel before the S-1, not after.
It gives the audit committee the channel. The committee still sets and owns the procedures.
No. Policies and agreements must not stop anyone from going to the SEC. Have counsel review yours.
Before filing, so the program is working when investors and auditors look.