Which of the following statements is NOT true?
A)The SEC has authority to accept or reject financial accounting principles and standards developed by the FASB.
B)The Sarbanes-Oxley Act places great emphasis on internal controls and fraud prevention.
C)Because of the Sarbanes-Oxley Act, it is probable that the FASB's conceptual framework will become less important in developing accounting principles and standards.
D)The American Institute of CPA's has in the past had strong influence on the development of accounting principles.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act does not specifically affect the importance of the FASB's conceptual framework in developing accounting principles and standards. This statement is therefore not true. The SEC does have authority to accept or reject financial accounting principles and standards developed by the FASB (A), the Sarbanes-Oxley Act places great emphasis on internal controls and fraud prevention (B), and the American Institute of CPA's has had strong influence on the development of accounting principles (D).

Which of the Following Statements Is NOT True