Description
This work requires a review of all the regulatory actions made by SEC during 2007 that are important for accounting, finance reporting and auditing and any other corporate governance issues. Basically, the writer will copy and paste all this regulatory actions from the SEC web page and then infer what are the two most important Final Rules and respond to the questions made.
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Explanation & Answer
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Running head: RULEMAKING ACTIVITIES FOR the YEAR 2007
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Rule Making Activities for the Year 2007:
Name:
Institution affiliation:
Date:
RULEMAKING ACTIVITIES FOR the YEAR 2007
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Introduction
In the absence of rules and regulations, companies may end up not only engaging in
fraudulent activities but may also take advantage of investors as they seek to achieve their
objectives and long term goal. It is for this reason that the U.S. Congress created SEC (U.S.
security and exchange commission) in the year 1934. This independent federal government
agency is tasked with, ensuring that investors in the market are protected against fraudulent
activities carried out by companies, maintenance of an orderly and fair securities market as well
as facilitation of capital formation. In summary, SEC promotes full disclosure by public
companies, monitors corporate takeover actions that occur in the U.S., and protects investors
against manipulative as well as fraudulent practices in the market. To keep up with the everchanging market conditions, SEC undertakes regulatory actions that include rulemaking
activities every year. In this paper, the two most critical final rules that were made by the SEC in
2007 that have an impact on financial reporting & disclosure, accounting as well as auditing will
be discussed.
The most important two final rules that are going to impact accounting, financial reporting
& disclosure, and auditing.
In the year 2007, final rules, proposed rules, concept releases, policy statements as well
as interpretive releases that are important for financial reporting & disclosure, accounting as well
as auditing were made by SEC. The two most important final rules that were made included;
amendments to the rules relating to management’s duty of reporting on internal control over
financial reporting, which was to become effective as of August 27, 2007 and acceptance of
financial statements from foreign private issuers that were prepared as per the IFRS
RULEMAKING ACTIVITIES FOR the YEAR 2007
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(International Financial Reporting Standards) without any reconciliation to the U.S. generally
accepted accounting principles (GAAP) that became effective on March 4, 2008.
Amendments to the rules relating to management’s duty of reporting on internal control
over financial reporting
Summary of the rule
The Amendments to the rules relating to management’s duty of reporting on internal
control over financial reporting sought to offer guidance for companies' management with regard
to how they ought to evaluate as well as assess their internal control over financial reporting. The...