Chapter 1, Problem 10.4EC

Indeed, there is the view that market abuse and insider dealing are not immoral and are victimless crimes. Others stated that insider trading had the capacity to significantly undermine the integrity and efficiency of the relevant securities markets. Do you think that insider trading should be regulated or not by the Government?  Do you think that insider trading is occurring in Antigua and Barbuda? Critically discuss.

What unfortunate lesson did the auditors learn from the situation in the Unregistered Sale of Securities case? What should auditors do when a violation of U.S. securities laws is suspected?

discuss the different instances when there is no duty to disclose in insider trading

Do you think there are any circumstances when you should go outside the company to report financial wrongdoing? If so, to what person/organization would you go? Why? If not, why would you not take the information outside the company?

What theory asserts that investors cannot benefit from technical analysis, fundamental analysis, or insider information?

Crazy Eddie focused on making the company look extremely profitable just prior to the IPO. Why was this important? Does this make a client that is in the process of issuing an IPO a higher-risk client? Why or why not? Are there other risks to the auditor when an IPO is included in the engagement?

1.Which of the following situations could be evidence that the investor lacks the capacity to exercise significant influence over the company in which he invested? Select one: a. The investor fails to obtain representation on the board of directors of the other company. b. The investor fails to obtain from the other company the information necessary to correctly account for the investment. c. The other company objects to the investor having significant influence and has gone to court or a regulatory agency. d. All the alternatives presented.

What business risks does Toll Brothers face that may threaten the company’s ability tosatisfy stockholder expectations? What are some examples of control activities that thecompany could use to reduce these risks? (Hint: Focus on pages 10–11 of the 10-K.)

What are the Possible sanctions (Financial penalties) Against company who break the rules of ACCA or IFRS. And How far it successful in avoiding scandals. Please elaborate.