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Reviewing The Sec 's Review Process Essay

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Read the article titled “Reviewing the SEC’s Review Process: 10-K Comment Letters and the Cost of Remediation” by Cory Cassell, Lauren Dreher and Linda Myers (The Accounting Review, Volume 88 No: 6, November 2013, pp. 1875-1908). The online edition of the journal is available through the GMU University Libraries website.
Use your own words as far as possible to avoid plagiarism issues and answer the following questions: i) Summarize the SEC’s 10-K review process. Read the links to SEC website given in footnotes 7, 8, 9 and 10 to enhance your understanding before you write the summary.
The SEC reviews reports filed on Form 10-K on a regular and systematic basis for the protection of investors by improving the information quality and the prevention of fraudulent activities in securities trading and markets by finding possible violations of the securities laws. The Division of Corporation Finance is looking for conflicts with Commission rules or the applicable accounting standards or on disclosure that appears to be materially deficient in explanation or clarity. These reviews are required at least once every three years. The Division won’t always review the entire filing. They may only review the financial statements, or in some cases they may only review and examine the filing for a targeted issue.
If more clarification is required or if the filings material is not sufficient, then the Division issues comment letter and request additional information to understand the
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