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SEC Report Calls for Better Internal Accounting Controls for Cyber-Related Threats

October 25, 2018, Covington Alert

On October 16, 2018, the Securities and Exchange Commission (the “Commission”) issued a Section 21(a) report of investigation (the “Report”) warning public companies about the importance of assessing the likelihood of cyber-related threats when designing internal accounting controls. The Report described the Division of Enforcement’s investigation of nine unidentified public companies that collectively suffered approximately $100 million in financial losses as a result of email scams.

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