Corporate CEOs, CFOs Voluntarily Certify SEC Filings

As stock prices continue to decline, companies seem to be growing as impatient as investors. Some corporate officers who are not required to comply with the certification order from the Securities and Exchange Commission (SEC) are doing so voluntarily, despite the risk of personal liability for making a false statement.

Companies that choose to go this route may also issue press releases to make sure they get recognized by the capital markets. Examples:

  • Technitrol, Inc., a producer of electrical and electronic parts, announced it would voluntarily adopt the SEC's rule on financial statement certifications starting with its second quarter 2002 Form 10-Q, even though this is earlier than required for the companies that are obligated to comply. CEO James M. Papada, III, explained, "We believe these rules make good overall sense. Public confidence in business and business leaders must be restored."

  • Cycle Country Accessories Corp., a manufacturer of accessories for the all-terrain vehicle (ATV), has announced it is taking the initiative with regard to the rule. President Ron Hickman explained, "Even though we are not required to file these sworn written statements as noted by the SEC's order, we strongly welcome an environment of truth and accountability."

  • ACE Limited, a provider of insurance and reinsurance, announced that its CEO and CFO would voluntarily comply with the new certification requirements, even though, as a non-U.S. company, ACE is not among those companies subject to the SEC's order. CEO Brian Duperreault said, "ACE adheres to the highest standards of financial reporting and it has always been our intention to adopt industry best practices. Accordingly, Phil Bancroft, ACE's Chief Financial Officer, and I have decided to voluntarily file the newly required statements."

In a CNN interview with Lou Dobbs on July 15, 2002, SEC Chairman Harvey Pitt said the Commission has been getting telephone calls from other companies as well, asking if they can voluntarily comply with the orders. He said he considers this to be a very positive development.

-Rosemary Schlank

You may like these other stories...

Success, for a practitioner in a busy CPA firm, requires the ability to handle multiple tasks effectively. To get everything done, CPAs typically track their agenda with a "to do" list or other open-item systems to...
Everyone loses clients. You've seen the statistics. Clients and heirs often change accountants, attorneys, and advisors after a death or divorce. That's understandable. What about ongoing relationships when the...
Event Date: July 23, 2014, 2 pm ETWe can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.