Are there any special accounting rules that apply to securities fraud?

There are several accounting rules that apply to securities fraud in California. The most important accounting rule is the Sarbanes-Oxley Act, which enacted a number of corporate reforms and regulations to protect investors and ensure accurate financial reporting. Under the Act, public companies must report all material misstatements or omissions in financial reports, and must establish internal control procedures to help detect and prevent fraud. The Financial Industry Regulatory Authority (FINRA) is another organization which regulates the securities industry in California. FINRA requires that brokers, advisors, and dealers must keep accurate records and accounts, and report all discrepancies. FINRA also requires that firms must maintain internal systems of accounting and control, and must implement procedures to detect, investigate, and report any potential fraud. The Commodity Futures Trading Commission (CFTC) is the federal agency responsible for regulating exotic instruments such as options, futures, and swap contracts. Under the CFTC, all financial firms must implement policies and procedures to detect and prevent fraud, as well as document and report any material misstatements or discrepancies. Finally, the Government Accounting Standards Board (GASB) implements accounting standards which are relevant to fraud and financial reporting. The GASB requires that state and local governments must develop an efficient system of internal control, and must maintain and examine up-to-date and accurate financial records. Overall, there are several rules and regulations that apply to the securities industry in California, all of which are aimed at helping to detect and prevent securities fraud.

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Are there any special accounting rules that apply to securities fraud?

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