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 these are additional requirements

Question

Quizplus · Accepted Answer

All three choices are additional requirements under the Private Securities Litigation Reform Act. The Act requires public companies and their auditors to disclose any illegal acts that may have a material effect on the financial statements, to report any lack of action or improper action by senior management and the board to correct for the act, and to determine whether the failure to correct for the act is reasonably expected to warrant a departure from the standard audit report.

The Private Securities Litigation Reform Act Imposes Additional Requirements on Public