The SEC Has Increased Focus on Identifying and Penalizing Misstatements

question 63

Multiple Choice

The SEC has increased focus on identifying and penalizing misstatements in public company financials. What is one method that the SEC is using to identify companies, CEOs, and CFOs that are misstating financial statements?

• A) Utilizing the whistleblower provisions of the Dodd-Frank Act to provide a hot line.
• B) Analyzing patterns of internal control problems even absent a restatement of the financials.
• C) Analyzing whether the CFO has implemented adequate internal controls and safeguards over the financial reporting function.
• D) Utilizing the company's ethics code to spot misstatements.

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Definitions:

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The action of buying, selling, or exchanging goods and services between people or countries.

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