Amendment of rule 2-01 of regulation s-x

When the Committee on Banking and Currency of the United States Senate was holding hearings on the Securities Act of 1933, a representative of the accounting profession appeared before the Committee and suggested requiring certification by independent public accountants of financial statements included in the registration statements under the Act. The committee considered at some length whether the additional expense to industry of having an impartial audit by accountants independent of the company and management was justified by the expected benefits to the investor and the public. The proposal to require certification by independent public accountants was incorporated in the principal statutes administered by this Commission, either as a requirement or as authority to require certification