Quarterly Audits: How to Streamline SEC Reporting and Avoid Penalties

For public companies, quarterly SEC reporting isn’t just a regulatory requirement—it’s a critical component of financial integrity and investor confidence. Strict expectations from regulators and stakeholders push organizations to optimize their SEC reporting workflows and improve audit efficiency.

In this article, we explore the challenges public companies face in meeting compliance obligations and the best practices for streamlining quarterly SEC reporting.

The High Stakes of Quarterly SEC Reporting

Under the Securities Exchange Act, public companies must file quarterly and annual reports on an ongoing basis. The Sarbanes-Oxley Act (SOX) further mandates that CEOs and CFOs certify the accuracy of these disclosures, including:

• Their review of the reports,
• Confirmation that there are no false statements,
• Fair representation of the company’s financial condition,
• Existence of internal controls for SEC compliance audits.

Failure to submit quarterly reports can result in serious penalties, which can cost public companies tens of thousands of dollars in fines. Meanwhile, the requirement to certify SEC quarterly reporting makes senior executives personally accountable for public company compliance requirements.

Common Challenges in SEC Quarterly Audits

Public companies have 45 days to file quarterly reports after the end of each fiscal quarter, while early filers have just 40 days to meet SEC deadlines. These compressed timelines and the risk of severe penalties create immense pressure on compliance teams.

Although companies can request extensions by submitting Form NT, they must disclose anticipated restatements or corrections. If a company fails to file on time, submitting a deficient Form NT does not extend the deadline and may even result in civil penalties.

In addition to short SEC filing deadlines, common challenges in quarterly reporting for public companies include:

• Manual Processes: Without automation, manual data entry increases the risk of human error, omissions, and inefficiencies in quarterly reporting.
• Weaknesses in Internal Controls: Deficiencies in internal controls remain among the main causes of SEC accounting and auditing enforcement actions.
• Cross-Functional Team Inefficiencies: SEC reporting requires input from multiple teams. A lack of coordination can lead to silos, delays, and compliance risks.
• Changing SEC Rules: SEC's new rules for disclosures, such as a requirement to report material cybersecurity incidents, along with a busy compliance schedule in 2025, create additional pressures on compliance teams.

Best Practices for Streamlining SEC Reporting

To navigate evolving SEC rules and tight deadlines, public companies must optimize their workflows to ensure compliance. Among the best practices for quarterly SEC reporting, automation stands out as the most effective way to reduce errors and ease regulatory burdens.

While evolving SEC rules and short reporting deadlines put a heavy strain on legal, accounting and finance teams, public companies need to streamline their workflows to ensure regulatory adherence across the board. Among quarterly SEC reporting best practices, automating compliance emerges as the key to reducing errors and easing the burden of regulatory demands in a fast-paced environment. 

The actionable steps to enhance efficiency and accuracy for quarterly SEC audits include:

• Creating a Central Database for Corporate Data:  When teams leverage a single source of truth for corporate data, they can share information instantly on a single platform, avoid data silos and streamline their reporting.
• Real-Time Data Updates: Working on a single platform, teams can avoid data decay, update reports in real-time, and ensure streamlined disclosures.
• Automating Compliance Reporting: Modern entity management technology provides legal and finance teams with an effective toolset to minimize manual input, align data across the organization and push it into customizable templates.
• Reinforcing Internal Controls: Introducing financial reporting automation can help reinforce internal controls to ensure the accuracy and reliability of disclosures.

How Automation Transforms SEC Compliance for Global Organizations 

Public companies that embrace technology in SEC reporting see measurable improvements in accuracy, efficiency and risk mitigation.

For example, Aramark, a global food service and facilities management company, successfully optimized its SEC compliance process through automation. By implementing automated solutions, Aramark reduced compliance costs and minimized reliance on external auditors.

Other large enterprises that adopt compliance automation report gaining greater control and visibility over their compliance data. Platforms like Athennian provide automated compliance tracking and reminders, enabling organizations to generate complex reports faster and stay ahead of regulatory obligations.

Future-Proofing Your SEC Reporting Process

To stay ahead of regulatory changes, public companies are increasingly adopting automation and AI-driven solutions to transform their financial reporting processes. 

By leveraging modern entity management platforms like Athennian, organizations can:

• Automate data input to improve reporting accuracy,
• Enhance data quality and eliminate inconsistencies,
• Ensure peace of mind for executives certifying compliance reports.

With Athennian, public companies can streamline SEC reporting through an intuitive entity management platform, a structured migration plan, and dedicated support.

Take the Next Step Toward SEC Compliance Efficiency

Discover how automation can simplify your SEC reporting and reduce compliance risks. Request a demo today!