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8 Cards in this Set
- Front
- Back
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What purpose does Accounting and Auditing Enforcement Releases (AAER) serve? |
Report the enforcement actions taken against accountants. |
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Define "Staff Accounting Bulletins (SAB)". |
Bulletins that provide the Security and Exchange Commission's current position on technical issues. |
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Define "Financial Reporting Releases (FRR)". |
Formal pronouncements that rank the highest in authority for public companies. |
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When the Securities and Exchange Commission (SEC) finds an accounting irregularity, what happens? |
The SEC sends a "deficiency" letter to a registrant when an accounting irregularity is found. |
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Does the Securities and Exchange Commission (SEC) have the authority to penalize firms when financial statements are not in accordance with Generally Accepted Accounting Principles? |
Yes, they may penalize firms. |
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How many divisions does the Securities and Exchange Commission (SEC) have? |
Four (The Division of Corporation Finance, The Division of Enforcement, The Division of Trading and Markets, and The Division of Investment Management). |
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What does the Securities and Exchange Commission (SEC) strive to do? |
Ensure that there is adequate information in the public domain before a company issues or trades securities. |
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Does the Securities and Exchange Commission (SEC) have legal authority to prescribe accounting standards to public companies? |
Yes, it has that authority. |
