The Private Securities Litigation Reform Act imposes additional requirements on public companies reporting to the SEC and their auditors when:
A) The illegal act has a material effect on the financial statements
B) Senior management and the board have not acted properly to correct for the act
C) The failure to correct for the action is reasonably expected to warrant a departure from the standard audit report
D) All of the above are additional requirements

Question

Quizplus · Accepted Answer

All of the above options are additional requirements imposed by the Private Securities Litigation Reform Act on public companies reporting to the SEC and their auditors. The act requires disclosure of any material illegal act that affects the financial statements, and if management and the board fail to take corrective action, it may warrant a departure from the standard audit report.

The Private Securities Litigation Reform Act Imposes Additional Requirements on Public