Asked by Morghan Graper on Jun 11, 2024
Verified
Why is the SEC's Rule 14c-3 important to the accounting profession?
SEC
The Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and protecting investors.
Accounting Profession
This refers to the field involving the measurement, processing, and communication of financial and non-financial information about economic entities such as businesses and corporations.
- Understand the function and obligations of the PCAOB in relation to public accounting firms.
Verified Answer
AK
Ahlam KablawiJun 11, 2024
Final Answer :
Rule 14c-3 is important to the accounting profession because it states that annual reports of a public company must include financial statements of the company that have been audited by CPAs as independent auditors.
Learning Objectives
- Understand the function and obligations of the PCAOB in relation to public accounting firms.