Of Counsel Margaret G. Nelson was quoted in a Gulf Times
article, "Accounting enforcement cases at SEC drop in 2018
," about a significant decline in the overall number of financial reporting related cases brought by the SEC this year compared to 2017.
Nelson said accounting fraud cases are very complex. "The SEC is investigating not only the issuer itself, but the auditor. That can take a long time," she said.
Auditor-focused cases have also dropped, even though SEC officials say that gatekeepers, including auditors, remain a focus, Nelson added. "We saw plenty of fraud cases or material misstatement cases brought against the issuer. But you didn't see a companion case brought against the auditor," she said.