A Look Inside The SEC's Accounting Quality Model

Law360, New York (January 6, 2014, 11:17 AM EST) -- It has been about a year since the U.S. Securities and Exchange Commission announced it would develop an “Accounting Quality Model”: a computer program that systematically searches public companies’ financial statements for signs of fraud. The announcement triggered a debate about the new model's likely effect on enforcement efforts. Is the model merely one more source of data for SEC staff to consider, along with other information about issuer financials? Or is it more like “RoboCop,” a powerful automaton that will trigger barrages of investigative subpoenas?...
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