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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Janice Shell who wrote (4560)	10/22/1999 2:49:00 PM
From: Mighty_Mezz	Read Replies (1) \| Respond to of 7056

SEC has proposed rule 34-41987, which I don't think HITT will like. Here's an excerpt from the "background" portion. Over the past few years, we have seen dramatic changes in the way investors receive information and the speed with which information can be and is disseminated to the market. Market demand for information appears to be at an all time high as technology makes information available to more people more quickly. These developments have presented companies with an increasingly complex set of challenges. One such challenge is that companies are under increasing pressure to meet earnings expectations.17 Unfortunately, we have begun to see cases in which companies have engaged in inappropriate "earnings management,"18 the practice of distorting the true financial performance of the company. Distortions may result from inappropriate earnings management and may undermine the integrity of financial reporting. As Chairman Levitt has stated, when inappropriate earnings management occurs, "ntegrity may be losing out to illusion." Here are some of the proposals: require that companies' independent auditors review the financial information included in the companies' Quarterly Reports on Form 10-Q or 10-QSB prior to the companies filing such forms with the Commission (see Section III.A below); require that companies include reports of their audit committees in their proxy statements; in the report, the audit committee must state whether the audit committee has: (i) reviewed and discussed the audited financial statements with management; (ii) discussed with the independent auditors the matters required to be discussed by Statement on Auditing Standards No. 61,12 as may be modified or supplemented;13 and (iii) received certain disclosures from the auditors regarding the auditors' independence as required by the Independence Standards Board Standard No. 1, as may be modified or supplemented,14 and discussed with the auditors the auditors' independence (see Section III.B below); require that the report of the audit committee also include a statement by the audit committee whether, based on such review and discussions, anything has come to the attention of the members of the audit committee that caused the audit committee to believe that the audited financial statements included in the company's Annual Report on Form 10-K or 10-KSB, as applicable, for the year then ended contain an untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which they were made, not misleading (see Section III.B below); require that companies disclose in their proxy statements whether their audit committee has adopted a written charter and, if the audit committee has adopted a charter, to include a copy of the charter as an appendix to the company's proxy or information statement at least once every three years (see Section III.C below); Here's a link to the entire document: sec.gov ...Mezz - Any of hitt's directors volunteering to be on the audit committee? LOL