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EBK ADVANCED FINANCIAL ACCOUNTING
11th Edition
ISBN: 8220102796096
Author: Christensen
Publisher: YUZU
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Question
Chapter 14, Problem 14.2.3E
To determine
Introduction:
Accounts legal liability in the registration process: The Company’s own accountants prepare the initial financial disclosures which are then audited by the company’s independent auditor. Under section 11 of the 1933 act, accountants are liable for any substantially false or misleading information in the registration statement. A document known as a comfort letter from the registrant’s public accountants is to be issued to the underwriters handling the sale of the securities. The comfort letter provides additional evidence that the public accountant has not found any adverse financial change since the filing date.
To choose: The correct answer to determine the purpose of comfort letter.
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Students have asked these similar questions
Choose the correct. What is a shelf registration?a. A registration statement that the SEC formally rejects.b. A registration statement that the SEC rejects due to the lapse of a specified period of time.c. A registration process for large companies that allows them to offer securities over a period of time without seeking additional approval by the SEC.d. A registration form that is withdrawn by the registrant without any action having been taken.
An auditor is establishing procedures for testing management’s assertions regarding existence in relation to reported investments in marketable securities. The auditor is considering using confirmations or observation. Which of these techniques would be appropriate for obtaining evidence about existence?
A. Confirmations Only
B. Observations Only
C. Neither confirmations nor observations
D. Both confirmations and observations
1.In accordance with CFA standard V(B), in preparing a research report involving securities, the members and candidates must:A.present the basis characteristics(general principles of the investment of the investment process used-such as risk and return related issues)
B.Include all factors that are relevant including any significant limitations and risks associated with the investment and/or decision-making process.
C.All the options listed.
D.Provide regular updates to any important changes to the securities(prices, risks.etc)
2. In accordance with CFA standard VI(A), a member must:
A.Disclose all actual and perceived conflicts of interest when it is convenient to ensure no loss of income.
B.Use their professional judgement and disclose conflicts of interest if the monetary value exceeds 300.
C.Disclose all actual and perceived conflicts of interest before assisting the client or employer.
D.Use their professional judgement and only disclose actual conflicts of interest.
Chapter 14 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
Ch. 14 - Prob. 14.1QCh. 14 - Prob. 14.2QCh. 14 - Prob. 14.3QCh. 14 - Prob. 14.4QCh. 14 - Prob. 14.5QCh. 14 - Prob. 14.6QCh. 14 - Prob. 14.7QCh. 14 - Prob. 14.8QCh. 14 - Prob. 14.9QCh. 14 - Prob. 14.10Q
Ch. 14 - What type of items that specially involve the...Ch. 14 - Prob. 14.12QCh. 14 - Prob. 14.13QCh. 14 - What types of information must be disclosed in the...Ch. 14 - Prob. 14.15QCh. 14 - Objectives of Securities Acts [CMA Adapted] During...Ch. 14 - Prob. 14.7CCh. 14 - Prob. 14.8CCh. 14 - Prob. 14.1.1ECh. 14 - Prob. 14.1.2ECh. 14 - Organization Structure and Regulatory Authority of...Ch. 14 - Prob. 14.1.4ECh. 14 - Prob. 14.1.5ECh. 14 - Prob. 14.1.6ECh. 14 - Prob. 14.2.1ECh. 14 - Prob. 14.2.2ECh. 14 - Prob. 14.2.3ECh. 14 - Prob. 14.3.1ECh. 14 - Prob. 14.3.2ECh. 14 - Prob. 14.3.3ECh. 14 - Prob. 14.3.4ECh. 14 - Prob. 14.3.5ECh. 14 - Prob. 14.3.6ECh. 14 - Prob. 14.3.7ECh. 14 - Prob. 14.4.1ECh. 14 - Prob. 14.4.2ECh. 14 - Prob. 14.4.3ECh. 14 - Prob. 14.4.4ECh. 14 - Prob. 14.6.1ECh. 14 - Prob. 14.6.2ECh. 14 - Prob. 14.6.3ECh. 14 - Prob. 14.6.4ECh. 14 - Prob. 14.6.5ECh. 14 - Prob. 14.6.6ECh. 14 - Prob. 14.6.7E
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