Sec Investigation Procedures
Essay Preview: Sec Investigation Procedures
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During this time of the SEC investigation and the resignation of CFO Allen, we must do various things to maintain the trust of our current clients, new clients, and investors. We must follow some legal procedures; communicate with the public and stakeholders, and ethics.
Because of the current circumstances of the SEC, investigation must cooperate with SEC during this investigation. There are allegations that some of our financial records are inaccurate during Allens time as our CFO. Legally, we must address this due to the SOX Act, which now holds executives accountable for financial records publicize because they have to review and sign off on financial records. If there is, anything that needs to be said that was known it needs to be told before the SEC starts their investigation. However, I am sure that the companys lawyer will advise to avoid saying anything but just cooperate and provide the information that SEC is asking for. SEC need the financial records in order for them to review and see if there are any inaccurate financial records as speculated.
We must communicate with the public that we have this situation under control so it is best to address the issue sooner rather than later. When we do it sooner it eliminates any rumors or speculations that may occur during this time of crisis. We must maintain the reputation of this company that has been strong for so all of these years. Once this investigation is over by us addressing the public early it will help to restore the companys reputation during our process of recuperating. When asked about why our CFO resigned, we need to advise that because of investigation we cannot disclose the reasons of why the CFO resigned until after the investigation is complete.
Ethically we must give SEC all of the information that they request due to the SOX ACT. This is the only way we will be fully cooperating with during the investigation. I know that our stakeholders may not like this idea, but we must ensure them that this investigation will not affect the quality of services that we continue to provide for our clients nor their investments that they have with us. We must maintain our Accounting ethics, do things as fairly, and correct as possible.
The press release will show that we have the situation under control, and we are doing everything possible to keep it under control. Also that we cooperating with SEC and will discuss more after the investigation because we do not want to jeopardize the investigation. This will show that the company does have integrity even during crisis such as this one.
We must follow the SOX ACT and allow SEC to obtain all information needed in order for the investigation to be completed. Then as soon as possible, we need to address the public about the investigation and change in organization because, if we do not say anything it will seem as if we do not have this under control. This will lead to