WSJ News Exclusive | SEC Accountant Warns of Heightened Fraud Risk Amid Recession Fears, Market Selloff

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WSJ News Exclusive | SEC Accountant Warns of Heightened Fraud Risk Amid Recession Fears, Market Selloff
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The SEC’s top accountant is warning of heightened fraud risk amid recession fears and a market selloff

Wall Street’s top watchdog is warning that the market selloff and fears of a recession could encourage more companies to cook their books, and it is pressuring auditors to catch them.

“The current economic environment is subject to significant uncertainties and, historically, that oftentimes leads to heightened fraud risk,” Paul Munter, acting chief accountant at the Securities and Exchange Commission, said in an interview. “So we are trying to be proactive and speak to the marketplace.”

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