Why SEC finds accounting-fraud investigation difficult but must proceed anyway

The Securities and Exchange Commission will have to overcome hurdles as it refocuses attention on accounting fraud, according to this article. Uncovering accounting fraud requires digging through years of statements and demands more resources compared with other types of investigation. Accounting standards can be vague and thus give companies enough cover to claim they acted in good faith. This article argues that the SEC must proceed, despite these challenges, to catch the next Enron-like scandal before it blows up in the market.

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