Numerous accounting scandals and material financial misrepresentations resulted in the SEC:
A)taking over responsibility for setting accounting rules in the United States.
B)requiring companies to issue monthly reports on financial data.
C)requiring companies to have two different accounting firms audit the financial statements included in the annual report on Form 10-K.
D)introducing severe legal consequences for managers found guilty of such actions.

Question

Quizplus · Accepted Answer

The SEC introduced severe legal consequences for managers found guilty of accounting scandals and financial misrepresentations, such as fines, imprisonment, and being barred from serving as officers or directors of public companies. The SEC did not take over responsibility for setting accounting rules, require monthly reports, or mandate that companies use two different accounting firms for auditing purposes.

Numerous Accounting Scandals and Material Financial Misrepresentations Resulted in the SEC