Directly from NASDAQ (link to their original update):
As previously communicated, on February 20, 2013 NASDAQ proposed a new rule to require that listed companies have an internal audit function. In light of the breadth and nature of the comments from our issuer community, and others, NASDAQ has determined to withdraw the proposal so that we may adequately consider these comments.
NASDAQ remains committed to the highest standards of corporate governance, and believes it is important that listed companies have appropriate mechanisms and processes in place to review risks and the system of internal controls. It is our intent to revise the proposed rule, taking into account the comments, and resubmit it.
We will of course keep you updated as things progress. In the meantime, if you have any questions, please feel free to contact your NASDAQ Relationship Manager.
So, many companies can breathe a sigh of relief for now. If you’re interested in reviewing the comments sent to the SEC on the proposal, you can read them here.
Reach out to us if you have questions or if you would still like some help with your considerations for setting up an Internal Audit function in your organization.
The policyIQ team wants to pass along an important Financial Reporting Alert brought to you by our RGP Finance and Accounting Practice.
Here is a summary highlighting the NASDAQ’s recent proposed rule change to require all NASDAQ-listed companies to establish and maintain an internal audit function. The proposal would require compliance for companies currently listed by December 31, 2013, while companies not yet listed would need to comply prior to listing. Currently, the New York Stock Exchange (NYSE) requires companies to have an internal audit function, but until now, the NASDAQ has considered it just a best practice.
For companies potentially impacted by this proposed rule, RGP is ready to assist you in a variety of ways, including: helping you start up a new internal audit function or completely outsourcing the function, providing experienced internal audit consultants under a co-sourcing arrangement, or conducting a search for internal audit talent for newly created internal roles, including chief audit executives.
Keep in mind that policyIQ can make quick work of organizing and bringing automation to an internal audit function. Automate your audit processes, have powerful reporting at your fingertips and save time and money on external audits by implementing policyIQ. Nimble, highly customizable and very easy to set up—we can have you up and running in a matter of weeks rather than over several months, as many of the heavy, clunky and expensive systems require.
To learn more, please contact us and we’ll connect you with one of our RGP colleagues in your area.