The SEC's enforcement program and section 10A

Section 10A of the Securities Exchange Act of 1934 establishes a statutory responsibility on the part of independent auditors to detect and report ill egal acts. There were no specific guidelines to the daily obligations impos ed by statute until October 2000. This article analyzes the SEC's interpret ation of independent auditor's obligations under Section 10A in light of th e current action, discusses different statutory provisions under which the Commission could address the situation, and whether the statutory language and legislative history of Section 10A support support expanding its enforc ement program.