Securities and Exchange Commission: Results of Fiscal Year 2004 Financial Audit

Pursuant to the Accountability for Tax Dollars Act of 2002, the Securities and Exchange Commission (SEC) is required to prepare and submit to Congress and the Office of Management and Budget audited financial statements. GAO agreed, under its audit authority, to perform the initial audit of SEC's financial statements. GAO's audit was done to determine whether, in all material respects, (1) SEC's fiscal year 2004 financial statements were reliable, (2) SEC's management maintained effective internal control over financial reporting and compliance with laws and regulations, and (3) SEC's management complied with applicable laws and regulations. Established in 1934 to enforce the securities laws and protect investors, the SEC plays an important role in maintaining the integrity of the U.S. securities markets. GAO was asked by the Chairman of the Senate Subcommittee on Federal Financial Management, Government Information, and International Security, Committee on Homeland Security and Governmental Affairs, to present the results of its May 26, 2005, report, Financial Audit: Securities and Exchange Commission's Financial Statements for Fiscal Year 2004 (GAO-05-244).