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Article: Accounting firm policies and procedures to prevent insider trading abuses. (includes appendix)
- Article from:
- The Ohio CPA Journal
- Article date:
- December 1, 1996
- Author:
CopyrightCOPYRIGHT 1996 Ohio Society of Certified Public Accountants. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Professional and non-professional employees of accounting firms frequently have access to private information relating to such matters as corporate earnings, major accounting write-offs, income projections, proposed changes in dividend rates and information concerning mergers, acquisitions and tender offers that could dramatically affect the price of the client's securities. Trading on such private information violates one's duty to the client, to the accounting firm and profession as well as federal insider trading prohibitions.
Accounting firms, as well as persons within the organization such as senior partners and others with supervisory responsibility, could be ...