The Securities and Exchange Commission is seeking comments on a request by Nasdaq for a rule change that will require its listed companies to establish and maintain an internal audit function.

The requirement, as detailed in a notice of proposed rulemaking, is intended to ensure that listed companies have a mechanism in place to regularly review and assess internal controls, identify weaknesses, and develop appropriate remedial measures, as well as making sure "that management and the audit committee are provided with ongoing information about risk management processes." The company may choose to outsource the function to a third party service provider other than its independent auditor.

The rule would apply to companies listed on Nasdaq on or before June 30, 2013, and they must establish an internal audit function by no later than Dec. 31, 2013. A company listed after June 30, 2013, must establish the function prior to listing.

The New York Stock Exchange has a similar requirement of their principal executive and principal financial officers. Nasdaq, in the filing, says it does not believe that the proposed rule change will result in any burden on competition that "is not necessary or appropriate” and adds that “competition among exchanges for listings is robust and vigorous, and the proposed rule change is not intended, nor is it expected, to reduce or diminish such competition.”

Comments may be submitted electronically online and via e-mail., comments@sec.gov, as well as by regular mail (in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549). All comments must reference file number SR-NASDAQ-2013-032. The SEC will post all comments online. Comments will be accepted for 21 days upon publication in the Federal Register.