The reporting requirements for fraud are detailed in Section 10A of the Securities Exchange Act of 1934. Which of the following steps are NOT part of a prescribed process that should be followed in deciding whether to report fraud?

Question

Quizplus · Accepted Answer

Section 10A of the Securities Exchange Act of 1934 does not prescribe determining who is responsible for the fraud as a step in deciding whether to report fraud. However, determining whether the violations have a material effect on the financial statements and whether appropriate remedial action has been taken are part of the prescribed process, along with determining whether reporting to the SEC is necessary.

The Reporting Requirements for Fraud Are Detailed in Section 10A