SEC Grades Year 2000 Compliance Efforts

Journal of Accountancy, October 1997 | Go to article overview

SEC Grades Year 2000 Compliance Efforts


The Securities and Exchange Commission issued a report on the readiness of the securities industry, including the SEC, for year 2000 information technology challenges. Most computer hardware, such as mainframes and personal computers, use a two-digit internal clock that will not roll over to the year 2000. The report, Readiness of the United States Securities Industry and Public Companies to Meet the Information Processing Challenges of the Year 2000, presents the positions of a special task force of the SEC staff.

According to the report, the majority of members of the securities industry were involved in assessing year 2000 compliance or already taking steps to remedy the problem. However. the report said few companies were completely prepared and a few had only recently become aware of the problem. Most of the SEC staff agreed the remediation efforts were moving along quickly enough.

At a press conference following the report's release, Congressman John D. Dingell (D-Mich.), who had requested the SEC issue such a report, said that while there appeared to be a high level of awareness and activity, the lack of progress in many areas was troubling. He said it is unclear whether this is due to lack of management attention, the high costs of conversion or competition for the pool of the best-qualified systems experts.

The report warned that the problem was too complex for companies to guarantee to have achieved complete year 2000 compliance. According to the report, efforts to solve year 2000 problems are best described as "risk management." Nonetheless, Dingell urged companies to set up contingency plans.

Standards and disclosure

The task force considered the connection of the year 2000 problem and the auditing, independence and accounting standards of public companies. After consulting with members of the accounting profession, including the American Institute of CPAs (see box below), the task force concluded that current standards alert management, investors and other users of financial information to the problem's seriousness. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

SEC Grades Year 2000 Compliance Efforts
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.