The us securities and exchange commission sec and

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The U.S. Securities and Exchange Commission (SEC) and Internal Revenue Service (IRS), government agencies, have also been involved in overseeing accountants. In general, it comes down to accountants overseeing other accountants. Role of Congress Congress has taken an essential role in resolving matters that emerge with clients and accounting firms. In most recent times, the public is requesting that the accounting industry be better policed by Congress. The “Sarbanes-Oxley Act of 2002” was represented to make management more responsible by holding them accountable for internal controls and not the auditors. The SEC has made some publicly traded companies officers certify the filing of financial statements accuracy to the SEC. A proposal has been created that a panel of overseers be created to regulate the industry of public accountants and a wide extent of consulting services would be forbidden. Annual Report vs. 10-K
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FINANCIAL REPORTING The 10-K and annual report are filed annually and both assist shareholders/parties in making decisions in regards to the company. The annual report normally consists of the following: balance sheet, an independent report from an auditor, company operations general report, income statement, Chief Financial Officer (CFO) or Chief Executive Officer (CEO) letters, and on occasion can contain a view of the history of the company. While the 10-K report contains the financial performance of the company during the fiscal year, it also includes the highest and lowest market prices of stock during that fiscal year. It also states the involved potential risks and legal aspects and may contain information in regards to certain public agreements. To summarize the differences between the two can be broken down into five things and include the following: 1) The annual report is normally a shorter version of what the 10-K contains. 2) The annual reports normally contain colorful pictures, which the 10-K is more black and white and no pictures. 3) Financial position overview and letters from the CEO or CFO are contained in the annual report and not in the 10-K. 4) Annual reports are more accessible and the 10-K is mainly submitted to the SEC. 5) The 10-K normally contains an intricate analysis of both the marketplace and business nature, which the annual report does not; the 10-K contains the company’s financial performance, both high and low of stock market prices, aspects of legal, future risks and fixed agreements that are not publically known. While the annual report contains the balance sheet, report from an independent auditor, company’s operations general report, income statement, letters from the CEO or CFO, and a look at the history of the company.
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FINANCIAL REPORTING Some companies, such as Apco, urge their investors to look closer at the 10-K risk factors and disclosures and their 10-Q form on either the SEC or their own website. Their own website shows the most recent reports and gives an overview of their company finances, strategies, operations, and more.
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  • Spring '12
  • James
  • Balance Sheet, U.S. Securities and Exchange Commission, Form 10-K

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