Cornerstone Research Connects

2021 Accounting and Auditing Enforcement Activity

Elaine Harwood, Alison Forman, and Simona Mola, coauthors of the report Accounting and Auditing Enforcement Activity—2021 Review and Analysis, discuss their recent findings, including:

• The overall level of enforcement activity during 2021.
• An analysis of enforcement activity at the SEC in the months after Chair Gary Gensler took office in 2021, compared to the enforcement activity in the months after his predecessor, Jay Clayton, took office in 2017.
• The sharp decline in total and median monetary settlements in SEC enforcement actions.
• Penalties at the PCAOB imposed on firm respondents and individuals.
• Expectations at both agencies for 2022.

SEC Cryptocurrency Enforcement Activity

Simona Mola, author of the report, SEC Cryptocurrency Enforcement—Q3 2013–Q4 2020, joins Abe Chernin to discuss the report’s findings and current updates in regulatory enforcement of cryptocurrency, including:

• The number and type of cryptocurrency-related allegations brought by the SEC
• How the SEC became one of the main regulators in the cryptocurrency space
• The SEC’s enforcement approach to cryptocurrency-related actions
• The SEC’s priorities under the Biden administration

2019 Accounting and Auditing Enforcement Activity

Elaine Harwood and Alison Forman, coauthors of the report, Accounting and Auditing Enforcement Activity—2019 Review and Analysis, join Laura Simmons to discuss their recent findings, including:

• The overall level of enforcement activity during 2019, which saw a decrease in SEC actions but an increase in PCAOB actions.
• The increased number of enforcement actions involving announcements of restatements or material weaknesses in internal controls.
• Trends in enforcement actions brought against non-U.S. respondents at the SEC and PCAOB.
• The most common allegation types brought by the SEC and PCAOB.
• Settlement activity at the SEC and PCAOB, including an increase in the median settlement amount in 2019 at both agencies. 

2019 Accounting Class Action Filings and Settlements

Elaine Harwood, Frank Mascari, and Laura Simmons, coauthors of the report, Accounting Class Action Filings and Settlements—2019 Review and Analysis, discuss their recent findings, including:

• The record number of accounting class action filings in 2019.
• The upward shift in the size of defendant firms.
• The large number of accounting case settlements involving accompanying SEC and criminal actions.
• The impact of the new revenue recognition standard on case filings and its expected impact on settlements.

2019 Securities Class Action Settlements

Laura Simmons and Laarni Bulan, coauthors of the report, Securities Class Action Settlements—2019 Review and Analysis, join David Marcus to discuss their findings, including:

• Key drivers that led to higher median settlement amounts.
• Important determinants of settlement outcomes.
• Settlements in the pharmaceutical sector.