SEC urges companies to tighten cash-flow statement accounting, controls

The Securities and Exchange Commission wants companies to tighten accounting procedures and controls around their cash-flow statements in light of the growing number of restatements. Companies should step up “risk assessment and monitoring controls in addition to control activity-level controls,” said Kirk Crews, a professional accounting fellow at the agency. The Public Company Accounting Oversight Board said it will also monitor auditors’ work on cash-flow statements.