Companies on NASDAQ: Get Ready for New Proposed Internal Audit Rule

The NASDAQ recently proposed a rule that companies listed on the stock exchange will soon be required to establish and maintain an internal audit department. With the proposed rule companies listed on the exchange on or before June 30, 2013 must establish an internal audit function no later than December 31, 2013. For companies that plan to list on NASDAQ after June 30, 2013, they must implement the internal audit function before they can list on the exchange.

Whether your company decides to outsource or build the internal audit function internally, the purpose of the internal audit function should be more than just complying with the proposed NASDAQ rule. An effective internal audit function provides your company’s executives with a much stronger understanding of risk, which consequently results in more intelligent decision-making that can directly affect the bottom line. 

For more information about how Weaver can assist your company with compliance, contact Alyssa Martin, risk advisory services partner, or Dale Jensen, partner-in-charge of public company audit services.