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How the SEC cracked down on false financial statements in 1992
Author(s) -
Cole Cathy
Publication year - 1993
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.3970040303
Subject(s) - accounting , commission , audit , enforcement , valuation (finance) , business , revenue recognition , deferral , accounting standard , revenue , financial accounting , accounting records , actuarial science , finance , accounting information system , law , political science
During 1992, the Securities and Exchange Commission issued eighty Accounting and Auditing Enforcement Releases (AAER) involving false or misleading financial information. The underlying accounting violations include issues of manipulation of accounting records, ownership and valuation of assets, revenue recognition, cost deferral, loss recognition, and the adequacy of disclosures. The AAERs shed light on the conditions that lead to financial misstatements and provide guidance on the SEC's interpretations of generally accepted accounting principles, generally accepted auditing standards, and its own disclosure rules.