Discuss how SEC rules affect the legal and the ethical relationship between accountants and the companies they audit
The SEC rules require accountants to maintain independence from their clients. The accountant must be able to exercise objective and impartial judgment on all issues. One way to ensure this is by forbidding an auditor or the auditor's family from maintaining a financial or business relationship with the client. Specifically, the SEC rules prohibit accountants or their families from owning stock in a company that their firm audits. SEC rules of practice say that an accountant who engages in unethical or improper professional conduct may be banned from practice before the SEC. Banned or suspended auditors cannot perform the audits required by the 1933 and 1934 Securities Acts.
You might also like to view...
Urban customers typically place more importance on
A. reducing their shopping time. B. reducing their shopping expense. C. diversity of the retailer's assortment. D. finding better bargains. E. getting all possible alternatives.
______ are visual tools that can be used to make decisions in intermittent processes.
a. Gantt charts b. Assignment methods c. Pie charts d. Milestone charts
________ is an Internet marketing strategy used to increase the quantity and quality of traffic from search engines, often by improving the site's position in result lists
A) Search engine marketing B) Search engine optimization C) Geotargeting D) Content farming
An individual taxpayer who is self-employed and an active investor has qualified for foreign tax credits, nonrefundable personal tax credits and general business credits. Because he knows there are differing limitations on the application of these credits, with resulting interrelated aspects, he wants to know the appropriate order for their application. The appropriate order of the application of
these three classes of tax credits is as follow: A) (1) foreign tax credits; (2) general business credits; (3) nonrefundable personal tax credits. B) (1) general business credits; (2) foreign tax credits; (3) nonrefundable personal tax credits. C) (1) foreign tax credits; (2) nonrefundable personal tax credits; (3) general business credits. D) (1) nonrefundable personal tax credits; (2) foreign tax credits; (3) general business credits.