The Continuing Saga

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According to the Washington Post, Coinbase CEO Brian Armstrong said the SEC told the company that the upcoming product it is planning to offer is a type of security that should be registered with the government. Questions: What is Coinbase’s proposed product? Why does the SEC care? How does Neel Kashkari, president of the Minneapolis… Read more »

Alarm about Crypto Move into Banking

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According to the New York Times, with more companies offering cryptocurrency loans and high-yield deposit accounts Washington is worried about how this might disrupt the banking industry with a lack of regulations. Questions: Which company was mentioned in the article as aspiring to be the J.P. Morgan Chase of cryptocurrency? What crypto platform temporarily lost… Read more »

E & Y Charged

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According to Accounting Today, the Securities and Exchange Commission (SEC) charged Ernst & Young (EY), one of its current partners, and two of the firm’s former partners Monday with violating auditor independence rules and improper professional conduct. Questions What was the public company audited by EY according to this charge? What were the auditor independence… Read more »

Big Shakeup!

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The Securities and Exchange Commission abruptly removed William Duhnke as chairman of the Public Company Accounting Oversight Board.  Questions: According to the new chair, what does this firing report to do? Why has the PCAOB come under recent scrutiny? How long has Duhnke been chair? According to the article, why shouldn’t PCAOB members be replaced… Read more »

SEC moves toward ESG disclosure enforcement

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According to Accounting Today, the SEC has formed a Climate and ESG Task Force in its enforcement division to identify misconduct in environmental, social and governance reporting. Questions: How are accounting firms putting more emphasis on ESG issues? What initiatives are taking place in the area of standard setting? What has a recent study found… Read more »

Tesla Invests in BitCoin

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According to the Washington Post and an SEC report, Tesla has invested  $1.5 billion in bitcoin and plans to start accepting the cryptocurrency as payment in the near future. Questions: As a result of Tesla’s announcement, what happened to the price of bitcoins? Alternatively, did Tesla show as much movement? How does the price of… Read more »

New SEC disgorgement provisions

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According to the Insights Commentary, the U.S. Congress recently passed the National Defense Authorization Act (“NDAA”) for Fiscal Year 2021, which includes important changes to the Securities and Exchange Commission’s (“SEC”) ability to seek disgorgement. Although President Trump vetoed the bill, the House of Representatives and Senate voted to override the veto on December 28,… Read more »

GE owes $200 Million fine

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According to Accounting today, General Electric Co. was fined $200 million for allegedly misleading investors about the finances of its gas-power unit, as well as a run-off insurance business. Questions: According to the article, what did GE fail to explain to its shareholders? What is GE required to report for the first year to the… Read more »

SEC goes after COVID disclosures

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According to Accounting Today, the U.S. Securities and Exchange Commission (SEC) said it has settled charges against Cheesecake Factory Inc. over “materially false and misleading” statements after the restaurant chain failed to disclose the financial impact of the coronavirus pandemic earlier this year. Questions: What was the penalty? According to SEC’s order, how much was… Read more »

SEC loosens independence rules

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According to Accounting Today, the SEC loosened independence rules as part of a deregulatory push in recent years. Questions: According to the article, what will the amendments to Rule 2-01 of Regulation SX do? How do the new and old rules vary on the following situation: An auditor is with a firm that audits a… Read more »