A prescription that may weaken the patient

    Headline: A prescription that may weaken the patient Source: Euromoney Date: April 2000 Author: Mark Kessel The Securities & Exchange Commission wants to impose new responsibilities on audit committees, but the potential liability might put off the highly qualified people companies need to attract. After a year-long campaign against accounting abuses that inflate […]

    Headline: A prescription that may weaken the patient
Source: Euromoney
Date: April 2000
Author: Mark Kessel

The Securities & Exchange Commission wants to impose new responsibilities on audit committees, but the potential liability might put off the highly qualified people companies need to attract.

After a year-long campaign against accounting abuses that inflate earnings, the US Securities & Exchange Commission (SEC) has issued its long-awaited directives concerning these “earnings management” practices. Companies may now feel these decrees provide them with guidelines to avoid the kind of SEC prosecutions that have earned brand-name companies unwanted publicity – not to mention attacks from the plaintiff bar.






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