"When FTX is under discussion, a common question to arise is, “Who performed the audit on FTX?”. In the framework of the SEC’s regulatory enforcement on accounting and auditing, the submission of the audited financial statements to SEC is of paramount importance.
The submission of such audited FS is compulsorily required by SEC. These SEC audited financial statements they facilitate the accountability and transparency of the related business entity.
Should anyone question about the submission of audited FS to the SEC, there exists a set of protocols and guidelines that should be adhered to.
Audits make up a significant observation field for the SEC. In the composition of the SEC audit committee, a financial expert commonly plays a vital role. The SEC has a strong influence over audits, one of its primary powers.
As for the annual audit filing of broker-dealer with the SEC, compliance with this requirement is a significant aspect of the SEC regulations.
When auditing the financial here records of FTX falls under the oversight of these regulations, given the interconnection between the FTC and SEC.
In the US, it's standard practice for an entity to require SEC's approval to function as an audit client. SEC also recognizes external auditors bringing forth robust quality control in audited financial documents.
To clarify what the term 'SEC' refers to in an audit, it means the U.S. Securities and Exchange Commission, an organization that regulates audits.
Even in places like Texas, the SEC holds sway in regulatory matters. In conclusion, clarity regarding FTX's auditor to understanding SEC's influence, audit norms and protocols carry great weight in the finance industry."