SEC Sanctions The sec has the power in certain circumstances to sanction or suspend practitioners from doing audits for SEC companies. Rule 2(e)of the SECs Rules of Practice state The commission may deny, temporarily or permanently, the privilege of appearing or practicing before it in any way to any person who is found by the commission.. (1)not to possess the requisite qualifications to represent others, or(2) to be lacking in character or integrity or to have engaged in unethical or improper professional conduct. L灬 boecker Andina&EArens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc, The SEC has the power in certain circumstances to sanction or suspend practitioners from doing audits for SEC companies. Rule 2 (e) of the SEC’s Rules of Practice states. The commission may deny, temporarily or permanently, the privilege of appearing or practicing before it in any way to any person who is found by the commission…..(1) not to possess the requisite qualifications to represent others, or (2) to be lacking in character or integrity or to have engaged in unethical or improper professional conduct