The Securities and Exchange Commission (SEC) is asking for public comments on a rule called Rule 10A-1, which is part of the Securities Exchange Act of 1934. This rule requires certain companies to report to the SEC if their auditors find serious financial problems that the company's management has not fixed promptly. Although this reporting requirement has been in place since the mid-1990s, its approval by the Office of Management and Budget expired in 2021, so the SEC seeks to renew this approval. The SEC estimates that the total additional burden of this rule is about 5 hours per year for the companies involved, and they invite public comments on how to improve or reduce this burden.
Simple Explanation
The SEC is asking people to tell them what they think about a rule where companies have to let them know if their money-checkers, called auditors, find big money problems that aren't being fixed. They want to find out if this rule is hard to follow or needs changing and are trying to get permission to keep using it because their last permission ran out in 2021.