Numerous accounting scandals and misrepresentation of financial results have been reported in the news during the past few years. As a result the SEC recently has:
A) taken over responsibility for setting accounting rules in the United States.
B) required companies to issue monthly reports on financial data.
C) required companies to have two different accounting firms audit the financial statements included in the annual report on Form 10-K.
D) introduced severe fraud charges for managers found guilty of such actions.

Question

Quizplus · Accepted Answer

The SEC has introduced severe fraud charges for managers found guilty of accounting scandals and misrepresentation of financial results to deter such actions and ensure the integrity of financial reporting.

Numerous Accounting Scandals and Misrepresentation of Financial Results Have Been