Chapter 2 LO4

Question 1

Several reports required by the SEC are of interest to auditors. What are they? (4)

Answer 1

1.Form S-1—“S” forms must be completed prior to issuing new securities to the public. it is the general form used when there is no specifically prescribed form 2. Form 8-K—report significant events of interest to investors. like acquisition or sale of subsidiary, change in officers or director, an addition of a new product line, or change in auditors 3. Form 10-K—annual report filed within 60-90 days after close of each fiscal year with detailed financial information, including audited financial statements. 4.Form 10-Q—quarterly report for all publicly held companies. containing certain financial information and auditor reviews of financial statements before filing with commission

Question 2

what is the Securities Act of 1933?

Answer 2

Requires most companies planning to issue new securities to the public to submit a registration statement to the SEC for approval.

Question 3

T/F the attitude of the SEC is not considered in any major change proposed by FASB

Answer 3

F

Question 4

T/f The SEC does not have the power to establish rules for any CPA associated with auditted financial statements submitted to the commission

Answer 4

F

Question 5

what is The Securities Acts of 1933 and 1934?

Answer 5

Require financial statements and the opinion of an independent public accountant as part of the registration statement and subsequent reports

Question 6

what is The Securities Exchange Act of 1934?

Answer 6

Provides additional protection for investors by requiring public companies and others to file detailed annual reports with the commission. they examine thse statements for completeness and adequacy before permitting company to sell its securites through the securities exchange

Question 7

What is The Securities Exchange Commission (SEC)?

Answer 7

A federal government agency that assists in providing investors with reliable information upon which to make investing decisions.

Question 8

T/F the SEC has considerable influence in setting GAAP and disclosure requirements for financial statements

Answer 8

T