Advanced Financial ACCT Exam 3
What is a letter of comments? By what other name is it often called?
"Deficiency letter" used to clarify necessary changes
Which of the following must be provided to every potential buyer of a new security? a. A prospectus. b. A letter of comments. c. A Form S-16. d. A deficiency letter.
a. A prospectus. Recall that the letter of comments/deficiency letter relates to the SEC's response subsequent to an issuer's filing of a registration statement.
Regulation S-X
form and content of financial statements and the related notes and schedules included in reports filed with the SEC
Securities Act of 1933
gives potential investors adequate info for new securities
In 2002, several accounting scandals rocked the corporate world (Enron, WorldCom, Adelphia). Why?
inappropriate auditing practices, greed, small size of the SEC
Sarbanes-Oxley Act of 2002
mandated a number of reforms to bolster corporate responsibility, strengthen disclosure, and combat fraud - created the PCAOB, requires the registration of public accounting firms, requires auditors to be independent (separate from mgmt)
Investment Company Act of 1940
minimizes conflicts that arise in fund management
Trust Indenture Act of 1939
more filing for sales of trusts, bonds, notes and more
The Office of the Chief Accountant
principal advisor to the commission on accounting and auditing matters - works closely with FASB and AICPA
The Office of Compliance Inspections and Examinations
quick and informal correction of compliance problems. Are brokers, dealers, investment companies, and advisors complying with the securities?
The Division of Trading and Markets
registering and regulating brokerage firms, overseeing the domestic securities market, and overseeing SIPC
Foreign Corrupt Practices Act of 1977
requires the maintenance of accounting records and adequate internal accounting controls
What does a proxy statement include?
The proxy statement must include the party for whom its being made, all matters to be voted on, & in most cases it must be accompanied by an annual report to the shareholders.
What is the purpose of Staff Accounting Bulletins?
They are used as a means of informing the financial community of the SEC's positions.
What is the purpose of Financial Reporting Releases (FRRs)?
They supplement Regulation S-X and Regulation S-K
T or F: the SEC has authority to override pronouncements in the private sector
True
T or F: Not all securities issued are required to be registered with the SEC
True Examples are securities sold to residence of the state in which the issuer is charted and their principal business procedures take place, however they can still be regulated by securities laws
The Office of Information Technology
supports SEC staff, operates EDGAR, and maintains the website
Public Utility Holding Company Act of 1935
the stop on huge utility empires
How are SEC and PCAOB registration fees charged?
they are charged based on value of securities offered
Where should public firms register?
with the PCAOB and provide them with enough information, and they will be subject to periodic inspections by the PCAOB
T or F: FASB has veto power over SEC
False the SEC has veto power over FASB
Walston Comp is to be liquidated LIABILITIES: Income taxes $8,000 Notes payable (secured by land) 120,000 Accounts payable 85,000 Salaries payable (evenly divided between two employees) 6,000 Bonds payable 70,000 Administrative expenses for liquidation 20,000 ASSETS: (list order) Book Value - Fair Value Current assets $80,000 - $35,000 Land 100,000 - 90,000 Buildings and equipment 100,000 - 110,000 How much money will the holders of the notes payable collect following liquidation?
$108,000 Free Assets 35,000+110,000=145,000 Liability w/ Priority 20,000+6,000+8,000=34,000 -- 145,000-34,000=111,000 Unsecured Liabilities 30,000+85,000+70,000=185,000 (30,000 comes from 120,000-90,000) 111,000/185,000=60% 90,000+(30,000*60%)=108,000
Ataway Company has suffered severe financial difficulties and is considering filing a bankruptcy petition. It has the following assets and liabilities. The assets are stated at net realizable value. Assets (pledged against debts of $70,000)$116,000 Assets (pledged against debts of $130,000) 50,000 Other assets 80,000 Liabilities with priority 42,000 Other unsecured creditors 200,000 In a liquidation, how much money would be paid on the partially secured debt?
$74,000 80,000+(116,000-70,000)=126,000-42,000=84,000 (130,000-50,000)+200,000=280,000 84,000/280,000=30% 50,000+(80,000*30%)=74,000
When is a Form 8-K issued by a company? What information does it convey?
- 15 days after event. - to announce major events that shareholders should know about.
Impact on Financial Reporting to Stockholders
-information of Regulation S-K must be included in the Annual Report -SEC is working on an integrated disclosure system -improved quality of disclosures to shareholders
What is the Issuer's Registration Process? (4 steps)
1. Select and acquire information for correct form 2. Division of Corporation Finance reviews submission to determine that information complies Regulation S-K and a CPA verifies financial statements comply with Regulation S-X and GAAP 3. Letter of Comments (deficiency letter) is returned to company with necessary changes to complete the process 4. Once changes have been made, statement is effective
Challenging Individual Statements, what are the three methods?
1. requiring additional disclosure 2. prohibiting application of certain practices 3. forcing registrant to change field statements (less formals) -failure would result in refusal to approve future registrations -Dodd Frank strengthened the SEC's power in challenging
Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,200 in free cash. The following debts, totaling $43,050, remain: Government claims to unpaid taxes$7,000 Salary during last month owed to Mr. Key (not an officer) 19,200 Administrative expenses 3,450 Salary during last month owed to Ms. Rankin (not an officer) 5,850 Unsecured accounts payable 7,550 Indicate how much money will be paid to the creditor associated with each debt.
Administrative expenses - $3,450 Salary during last month owed to Mr. Key and Ms. Rankin - $19,500 Government claims to unpaid taxes - $3,250 liabilities w/ priority Paid first—administrative expense$3,450 Paid second—wages: total of $5,850 for Rankin but only up to a maximum of $13,650 for Key 19,500 Total of first priority claims 22,950 All remaining money available goes to: Government claims to unpaid taxes 3,250 Total of free assets$26,200
When can the SEC declare a moratorium?
It can be declared when SEC sees there is no authoritative guidance present
What is a moratorium and who can issue them?
Moratorium - temporary prohibition of an activity Sec can declare a moratorium on the use of specific accounting practices
What are each of these exempt regulations? Revised Regulation A Regulation D-Rule 504 Regulation D-Rule 505 Regulation D-Rule 506
Revised Regulation A: 2 tier breakdown that affects startups Regulation D-Rule 504: Offerings no more than $1 million Regulation D-Rule 505: Offerings no more than $5 million Regulation D-Rule 506: private placement of any dollar amount
When do you use each type of SEC registration statement? S-1 S-3 S-4 S-8 S-11
S-1: used by new registrants S-3: used by companies with at least $75 million of voting stock (large company) S-4: used for business combination transactions S-8: used as reg statement for employee stock plans S-11: used by real estate companies
How did the SEC handle gray areas of accounting?
SEC restricts use of authority on gray areas and requires disclosure of additional data if insufficient
What is a shelf registration? a. A registration process for large companies that allows them to offer securities over a period of time without seeking additional approval by the SEC. b. A registration statement that the SEC formally rejects. c. A registration form that is withdrawn by the registrant without any action having been taken. d. A registration statement that the SEC rejects due to the lapse of a specified period of time.
a. A registration process for large companies that allows them to offer securities over a period of time without seeking additional approval by the SEC. Shelf registrations consist of registering securities in advance so that a large issuer may subsequently offer the securities without the need of additional SEC approval.
Which of the following is not exempt from registration with the SEC under the Securities Act of 1933? a. An offering to 40 sophisticated investors. b. Securities issued by a government unit. c. Securities issued by a nonprofit religious organization. d. A public offering of $40 million to unaccredited investors under Regulation A.
a. An offering to 40 sophisticated investors. NFP organizations' securities (debt) are exempt from the registration requirement as are governmental securities (for instance municipal bonds). Revised Regulation A now has registration exemptions for up to $50 million of securities. The Securities Act of 1933 does not provide for exemption for offerings to 40 sophisticated investors.
What does the term incorporation by reference mean? a. Filing information with the SEC by indicating that the information is already available in another document. b. Incorporating a company in a state outside of its base of operations. c. The legal incorporation of a company in more than one state. d. A reference guide indicating informational requirements specified in Regulation S-X.
a. Filing information with the SEC by indicating that the information is already available in another document. This is a useful approach to referencing data which has already been provided to the SEC, or other agency, so that the data is not redundantly produced.
What is an inherent limitation of the statement of financial affairs? a. Many of the amounts reported are only estimates that might prove to be inaccurate. b. The figures on the statement vary depending on whether it is a voluntary or an involuntary bankruptcy. c. The statement is applicable only to a Chapter 11 bankruptcy. d. The statement covers only a short time, whereas a bankruptcy may last much longer.
a. Many of the amounts reported are only estimates that might prove to be inaccurate.
What financial statements must a company report when applying the liquidation basis of accounting? a. Statement of changes in net assets in liquidation and statement of net assets in liquidation b. Income statement and balance sheet c. Statement of liquidating cash flows and statement of current position during liquidation d. Statement of activities and a statement of financial position
a. Statement of changes in net assets in liquidation and statement of net assets in liquidation
When does the liquidation basis of accounting first have to be applied to financial statements to be viewed as in conformity with U.S. GAAP? a. When liquidation is imminent b. When an involuntary bankruptcy petition is approved by the court c. When the first asset is sold d. At least 90 days before the final asset is sold
a. When liquidation is imminent
Investment Advisors Act of 1940
advisors must register and follow certain standards -securities investor Protection Act of 1970
The Division of Economic and Risk Analysis
aids SEC in protecting investors, maintaining efficient markets, and facilitating capital creation.
The New England Company has a debt to a bank of $55,000. The company is being liquidated, and officials believe that between $12,000 and $20,000 will be paid on that debt. According to the liquidation basis of accounting, what amount is reported for this liability? a. $16,000 b. $55,000 c. $20,000 d. $12,000
b. $55,000
What is a letter of comments? a. A letter composed by a company asking for information or clarification prior to the filing of a registration statement. b. A letter the SEC sends to a company indicating needed changes or clarifications in a registration statement. c. A letter included in a Form 10-K to indicate the management's assessment of the company's financial position. d. A questionnaire supplied to the SEC by a company suggesting changes in Regulation S-X.
b. A letter the SEC sends to a company indicating needed changes or clarifications in a registration statement. Recall that the letter of comments/deficiency letter relates to the SEC's response subsequent to an issuer's filing of a Registration statement.
Which of the following is a requirement of the Sarbanes-Oxley Act of 2002? a. Overall assessment of the work of the SEC each year b. A monetary fee assessed on organizations issuing securities c. Registration of all auditing firms with the Public Company Accounting Oversight Board d. Annual inspection of all auditing firms registered with the Public Company Accounting Oversight Board
b. A monetary fee assessed on organizations issuing securities Not all auditing firms are required to register with (or be inspected by) the PCAOB; only those firms that prepare, issue, or participate in the preparation of an audit report for an issuer. Issuers do incur additional fees as a result of SOX.
Which of the following is usually not filed with the SEC on a regular periodic basis? a. A proxy statement. b. A prospectus. c. A Form 10-Q. d. A Form 10-K.
b. A prospectus. A prospectus is filed only in connection with the initial offering of a security. Therefore it is not 'regularly' filed with the SEC, unless the issuer is 'regularly' issuing new securities.
What is EDGAR? a. The enforcement arm of the SEC. b. A system designed by the SEC to allow electronic filings. c. A branch of the government that oversees the work of the SEC. d. A system the SEC uses to reject registration statements that do not contain adequate information.
b. A system designed by the SEC to allow electronic filings.
How are anticipated administrative expenses reported on a statement of financial affairs? a. As an unsecured liability. b. As a liability with priority. c. As a partially secured liability. d. As a footnote until actually incurred.
b. As a liability with priority.
On a balance sheet prepared for a company during reorganization, how are liabilities reported? a. As equity related and debt related b. As subject to compromise and not subject to compromise c. As current and long term d. As monetary and nonmonetary
b. As subject to compromise and not subject to compromise
How should a company emerging from bankruptcy reorganization report its liabilities (other than deferred income taxes)? a. At the negotiated value less all professional fees incurred in the reorganization b. At the present value of the future cash flows c. At their historical value d. At zero because of fresh start accounting
b. At the present value of the future cash flows
Which of the following is not a way by which the Sarbanes-Oxley Act attempts to ensure auditor independence from an audit client? a. The auditing firm must be appointed by the client's audit committee. b. Audit fees must be approved by the PCAOB. c. The audit committee must be composed of members of the client's board of directors who are independent of management. d. The external auditor cannot also perform financial information system design and implementation work.
b. Audit fees must be approved by the PCAOB.
What is the structure of the Public Company Accounting Oversight Board (PCAOB)? a. Headed by the Secretary of the Treasury b. Governed by a five-member board appointed by the Securities and Exchange Commission (SEC) c. Led by the Chief Executive Officer elected by certified public accountants d. Managed by a committee of industry experts chosen by the Federal Reserve
b. Governed by a five-member board appointed by the Securities and Exchange Commission (SEC)
A company's mgmt has monitored recent events that indicate that substantial doubt exists that the company can pay its debts as they come due over the following year. What should mgmt do next? a. Management should adjust liabilities to expected settlement amounts b. Management should examine the plans created to address the concern c. Management should disclose that substantial doubt exists that the company can remain in existence d. Management should adjust all asset balances to fair value
b. Management should examine the plans created to address the concern.
The Jackston Company is to be liquidated as a result of bankruptcy. Until the liquidation occurs, on what basis are its assets reported? a. Present value calculated using an appropriate effective rate. b. Net realizable value. c. Book value. d. Historical cost.
b. Net realizable value.
Difference between Regulation S-K and S-X? a. Regulation S-K establishes reporting requirements for publicly held companies whereas Regulation S-X is directed toward private companies. b. Regulation S-K establishes regulations for nonfinancial information filed with the SEC whereas Regulation S-X prescribes the form and content of financial statements included in SEC filings.
b. Regulation S-K establishes regulations for nonfinancial information filed with the SEC whereas Regulation S-X prescribes the form and content of financial statements included in SEC filings. Regulation S-K addresses non-financial information filed with the SEC while Regulation S-X addresses the form and content of financial documentation filed with the SEC.
What is the minimum limitation necessary for filing an involuntary bankruptcy petition in connection with a company that has 57 unsecured creditors? a. Signature of 9 creditors whom the debtor owes at least $23,225 in unsecured debt. b. Signature of 3 creditors to whom the debtor owes at least $16,750 in unsecured debt. c. Signature of 12 creditors to whom the debtor owes at least $14,775 in unsecured debt. d. Signature of 6 creditors to whom the debtor owes at least $18,250 in unsecured debt.
b. Signature of 3 creditors to whom the debtor owes at least $16,750 in unsecured debt.
What was the significance of the controversy in 1977 over the appropriate accounting principles to be used by oil- and gas-producing companies? a. Partners of a major accounting firm were indicted on criminal charges. b. The SEC overruled the FASB on its handling of this matter. c. Several major lawsuits resulted. d. Companies refused to follow the SEC's dictates.
b. The SEC overruled the FASB on its handling of this matter. The SEC's 1977 stand vis-à-vis oil and gas accounting principles was a unique situation wherein the SEC overruled the FASB as far as proper accounting treatment.
If the reorganization value of a company emerging from bankruptcy is larger than the fair values that can be assigned to specific assets, what accounting is made of the difference? a. The difference is recorded as an expense immediately. b. The difference is capitalized as goodwill. c. The difference is recorded as a professional fee. d. Because of conservatism, the difference is simply ignored.
b. The difference is capitalized as goodwill.
What is a prospectus? a. A document a company files with the SEC prior to filing a registration statement. b. The first part of a registration statement that a company must furnish to all potential buyers of a new security. c. A document attached to a Form 8-K. d. A potential stockholder as defined by Regulation S-K.
b. The first part of a registration statement that a company must furnish to all potential buyers of a new security. The prospectus must be furnished to all potential new security buyers and is provided to the SEC as part of the registration statement filing.
Which of the following is necessary for a company to use fresh start accounting? a. The previous owners must hold at least 50 percent of the stock of the company when it emerges from bankruptcy. b. The original owners must hold less than 50 percent of the stock of the company when it emerges from bankruptcy. c. The reorganization value of the company must exceed the value of all assets. d. The reorganization value of the company must exceed the value of all liabilities.
b. The original owners must hold less than 50 percent of the stock of the company when it emerges from bankruptcy.
On a balance sheet prepared for a company during reorganization, at what balance are liabilities reported? a. At the present value of the expected future cash flows b. At the amount of the anticipated final payment c. At the expected amount of the allowed claims d. At the expected amount of the settlement
c. At the expected amount of the allowed claims
What is a registration statement? a. A filing made by a company with the SEC to indicate that a significant change has occurred. b. An annual filing made with the SEC. c. A required filing with the SEC before a large amount of stock can be obtained by an inside party. d. A statement that must be filed with the SEC before a company can begin an initial offering of securities to the public.
d. A statement that must be filed with the SEC before a company can begin an initial offering of securities to the public. The 1933 Act deals with the requirements for registration of a security prior to its initial offering.
Which of the following is not a way by which the Sarbanes-Oxley Act attempts to ensure auditor independence from an audit client? a. The audit committee must be composed of members of the client's board of directors who are independent of management. b. The auditing firm must be appointed by client's audit committee. c. Audit fees must be approved by the Public Company Accounting Oversight Board. d. External auditor can't also perform financial information system design + implementation wor
c. Audit fees must be approved by the Public Company Accounting Oversight Board. Selection of the auditor and approval of the related contract, including the fees, is done by the firm's audit committee. This committee must be composed of members of the client's board who are independent of management.
A company's mgmt has uncovered events that indicate substantial doubt exists that the company can pay its debts as they come due over the following year. How can the company avoid disclosing that this substantial doubt exists? a. The plans must be tested before the end of the financial year by a liquidity expert b. The plans must be reviewed by the chief financial officer c. Disclosure of substantial doubt is required regardless of availability of the plans
c. Disclosure of substantial doubt is required regardless of availability of the plans
What are the objectives of the bankruptcy laws in the United States? a. Prevent insolvency and protect shareholders. b. Protect the economy and stimulate growth. c. Distribute assets fairly and discharge honest debtors from their obligations. d. Provide relief for the court system and ensure that all debtors are treated the same.
c. Distribute assets fairly and discharge honest debtors from their obligations.
What is the purpose of Regulation S-K? a. Establishes required financial disclosures with the SEC. b. Indicates which companies must file with the SEC on an annual basis. c. Establishes required disclosure of nonfinancial information with the SEC. d. Defines generally accepted accounting principles in the United States.
c. Establishes required disclosure of nonfinancial information with the SEC. Remember that regulation S-X is the regulation that focuses upon financial information disclosure.
Which of the following is a registration statement used by large companies that already have a significant following in the stock market? a. Form 10-K. b. Form S-1. c. Form S-3. d. Form 8-K.
c. Form S-3. S-3 is the form for registering securities if/when the issuer already has a significant public market following. The issuer will likely also file forms 8-K and 10-K, but those are not registration statements.
Which of the following is not a reorganization item for purposes of reporting a company's income statement during a Chapter 11 bankruptcy? a. Gains and losses on closing facilities. b. Interest revenue. c. Interest expense. d. Professional fees.
c. Interest expense.
Prior to filing a voluntary Ch 7 bankruptcy petition, Haynes Comp pays a supplier $13,000 to satisfy an unsecured claim. Haynes was insolvent at the time. Subsequently, the trustee appointed to oversee this liquidation forces the return of $13,000 by the supplier. Which is true? a. Supplier should sue for the return of this money b. All transactions prior to a voluntary bankruptcy proceeding must be nullified c. Preference transfer was voided d. $13,000 claim becomes a liability w/ priority
c. Preference transfer was voided
On a statement of financial affairs, how are liabilities classified? a. Current and noncurrent. b. Historic and futuristic. c. Secured and unsecured. d. Monetary and nonmonetary.
c. Secured and unsecured.
What is a cram down? a. The filing of an involuntary bankruptcy petition, especially by the holders of partially secured debts. b. The court's decision as to whether a particular creditor has priority. c. The bankruptcy court's confirmation of a reorganization even though a class of creditors or stockholders did not accept it. d. An agreement about the total amount of money to be reserved to pay creditors who have priority.
c. The bankruptcy court's confirmation of a reorganization even though a class of creditors or stockholders did not accept it.
Which of the following is not correct with regard to the PCAOB? a. The board can expel a registered auditing firm without SEC approval. b. All registered auditing firms must be inspected at least every 3 years. c. The board members must be appointed by congress. d. The board has the authority to set auditing standards rather than utilize the work of the Auditing Standards Board.
c. The board members must be appointed by congress.
What accounting is made for professional fees incurred during a bankruptcy reorganization? a. They must be capitalized until the company emerges from the reorganization. b. They are either expensed or capitalized, depending on the nature of the expenditure. c. They must be expensed immediately. d. They must be capitalized and written off over 180 months or less.
c. They must be expensed immediately.
Securities Exchange Act of 1934
creation of the SEC
In a bankruptcy case, which of the following statements is true? a. An order for relief results only from a voluntary petition. b. Creditors entering an involuntary petition must have debts totaling at least $21,625. c. Secured notes payable are considered liabilities with priority on a statement of affairs. d. A liquidation is referred to as a Chapter 7 bankruptcy, and a reorganization is referred to as a Chapter 11 bankruptcy.
d. A liquidation is referred to as a Chapter 7 bankruptcy, and a reorganization is referred to as a Chapter 11 bankruptcy.
Which of the following is not a liability that has priority in a liquidation? a. Payroll taxes due to the federal government. b. Administrative expenses incurred during the liquidation. c. Salary payable of $1,250 per person owed to 26 employees. d. Advertising expense incurred before the company became insolvent but not recorded until after the order of relief.
d. Advertising expense incurred before the company became insolvent but not recorded until after the order of relief.
When a company applies the liquidation basis of accounting, what reporting is appropriate for its assets? a. At the lower of cost or market value b. At fair value c. At cost less accumulated depreciation d. At the estimated amount of cash to be received
d. At the estimated amount of cash to be received
Which of the following is not an expected function of a bankruptcy trustee? a. Distributing assets to the proper claimants. b. Recovering all property belonging to a company. c. Liquidating noncash assets. d. Filing a plan of reorganization.
d. Filing a plan of reorganization.
An order for relief creates an automatic stay. This automatic stay a. Calls for the immediate distribution of free assets to unsecured creditors. b. Can be entered only in an involuntary bankruptcy proceeding. c. Provides an insolvent company with time to file a voluntary bankruptcy petition. d. Prohibits creditors from taking action to collect from an insolvent company without court approval.
d. Prohibits creditors from taking action to collect from an insolvent company without court approval.
The Securities Exchange Act of 1934 a. Requires the registration of investment advisers. b. Prohibits blue sky laws. c. Regulates the initial offering of securities by a company. d. Regulates the public trading of previously issued securities through brokers and exchanges.
d. Regulates the public trading of previously issued securities through brokers and exchanges. Remember that the 1933 Act deals with Registration and the 1934 Act deals with Regulation.
Which of the following statements is true? a. The Securities Act of 1933 regulates the subsequent public trading of securities through brokers and markets. b. The Securities Exchange Act of 1934 regulates intrastate stock offerings made by a company. c. The Securities Exchange Act of 1934 is commonly referred to as blue sky legislation. d. The Securities Act of 1933 regulates the initial offering of securities by a company.
d. The Securities Act of 1933 regulates the initial offering of securities by a company. "The Securities Exchange Act of 1934 regulates intrastate stock offerings made by a company." is false because intrastate offerings are typically exempt from registration; "The Securities Act of 1933 regulates the subsequent public trading of securities through brokers and markets." is false because the 1934 Securities Exchange Act regulates post-issuance trading of securities; and "The Securities Exchange Act of 1934 is commonly referred to as blue sky legislation." is false because blue sky legislation is state law.
Which of the following is not correct with regard to the Public Company Accounting Oversight Board? a. The board has the authority to set auditing standards rather than utilize the work of the Auditing Standards Board. b. All registered auditing firms must be inspected at least every three years. c. The board can expel a registered auditing firm without SEC approval. d. The board members must be appointed by Congress.
d. The board members must be appointed by Congress. The SEC appoints the five (5) PCAOB members.
What is a debtor in possession? a. A fully secured creditor. b. The holder of a note receivable issued by an insolvent company prior to the granting of an order for relief. c. The stockholders in a Chapter 7 bankruptcy. d. The ownership of an insolvent company that continues to control the organization during a bankruptcy reorganization.
d. The ownership of an insolvent company that continues to control the organization during a bankruptcy reorganization.
An involuntary bankruptcy petition must be filed by a. The insolvent company's attorney. b. The holders of the insolvent company's debenture bonds. c. The company's management. d. Unsecured creditors with total debts of at least $16,750.
d. Unsecured creditors with total debts of at least $16,750.
The Division of Enforcement
ensure compliance with federal securities law. Investigates violation of securities law and recommends remedies
The Division of Corporation Finance
ensures that publicly held companies meet disclosure requirements
Regulation S-K
established the requirements for nonfinancial information within the SEC filings
Dodd-Frank Act
expansion of the federal government's role which required stress tests, established the Consumer Financial Protection, and expanded authority to the SEC
