Tax Guru-Ker$tetter Letter

Friday, July 05, 2002

Swearing That Numbers Are Accurate

Here's an interesting concept, having the CEOs of big corporations sign affidavits, under penalty of perjury, that their financial statements are accurate. I'm sure most people thought this was already being done; but there have been so many ways for the top execs to deny responsibility for the numbers, that this is a good step in the right direction.

This doesn't sound any different from the penalty of perjury statement that we sign on our tax returns before submitting them to IRS.

In actuality, it may not make a lot more difference because it will only apply to corporations with over $1.2 billion in annual revenue. Companies that big have such large accounting departments and multiple levels of bureaucracy that it won't be difficult for the CEO to effectively deny any knowledge of the details of the figures.

KMK
- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 7/05/2002 10:45:00 AM Send this post: