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Financial Statement Analysis Ethics

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Financial Statement Analysis (FINC225 -1701A -05) Instructor: Christopher Nguyen Unit 5: Ethics and the SEC Amanda Kranning February 3, 2017 What is the SEC? Created in 1934 by way of the Securities Exchange Act, The U. S. Securities and Exchange Commission or SEC for short is an entity that protects investors. The SEC endorses the release of business information and protection from fraud for investors, allowing them access to reports and other securities forms through data gathering, analysis and retrieval with their EDGAR database. This protection aids in treating stockholders in a straightforward manner. (Investopedia, 2017) What is its role of the SEC in protecting the integrity of financial statements prepared? With providing knowledge to investors, the SEC allows potential stockholders …show more content…

Any new rules and regulations are required to disclose to the SEC as soon as they are enacted. 4. Issuers of securities with more than 500 shareholders and with assets exceeding $10,000,000 must register with the SEC, file quarterly and annual reports, and must follow certain rules relating to the solicitation of proxies from stockholders. (Investopedia, 2017) What information do publically traded companies disseminate? In 1998, the SEC provided access to the new Electronic Data Gathering, Analysis, and Retrieval system or commonly referred to as EDGAR. Providing up to date information in an accurate and timely manner to the public, EDGAR receives automated submissions from companies to which they validate, index, and accept. This allows pertinent statistics to reach investors. (SEC, 2017) 2000 brought about The Fair Disclosure Regulation is which it required publicly traded businesses to disseminate information such as Form 8-K, news releases, Web sites or Web casts, and press releases not just to select investors but to all. References Investopedia. (2017). Securities and Exchange Commission. Retrieved from

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