SEC Fails to Correct Own Problems, GAO Finds

The Securities and Exchange Commission, which enforces standards for financial reporting by public companies, continues to fall short in its own internal accounting procedures, a government report said.

An audit of the SEC’s 2005 financial report found that the agency failed to fix problems with computer security, fine collection and preparation of financial statements, the Government Accountability Office said Monday.

The GAO, which is the investigative arm of Congress, concluded that the SEC had addressed 13 of its 34 recommendations as of January. SEC Chairman Christopher Cox said the agency had taken additional steps since then.

“I remain committed to enhancing the SEC’s financial and operational effectiveness so that the agency can lead by example,” Cox wrote in a response included in the GAO report.