What are special purpose entities (SPEs)?
A)Fictitious organizations formed in order to perpetrate a financial statement fraud.
B)Business interests formed solely in order to accomplish some specific task or tasks.
C)Bodies formed to establish audit reporting standards and rules.
D)Independent audit boards set up to ensure that the financial statements are verified.

Question

Quizplus · Accepted Answer

Special purpose entities (SPEs) are business interests formed solely in order to accomplish some specific task or tasks. They are typically created to isolate financial risk and liability from the parent company.

What Are Special Purpose Entities (SPEs)