Financial Audit: Securities and Exchange Commission's Financial Statements for Fiscal Years 2005 and 2004

Established in 1934 to enforce the securities laws and protect investors, the Securities and Exchange Commission (SEC) plays an important role in maintaining the integrity of the U.S. securities markets. Pursuant to the Accountability of Tax Dollars Act of 2002, the SEC is required to prepare and submit to Congress and the Office of Management and Budget audited financial statements. GAO agreed, under its audit authority, to perform the audit of SEC's financial statements. GAO's audit was done to determine whether, in all material respects, (1) SEC's fiscal year 2005 financial statements were reliable and (2) SEC's management maintained effective internal control over financial reporting and compliance with laws and regulations. We also tested SEC's compliance with certain laws and regulations.